Arnya RealEstates Fund Advisors has launched a Rs 7.5 billion (bn) Category II alternative investment fund with Casagrand Premier Builder to provide development capital for residential projects in Chennai, Bengaluru and Hyderabad. The Arnya Real Estate Fund III – Preferred Capital is structured as preferred equity to give investors priority claim on capital and returns ahead of residual distributions to developers. The vehicle will deploy investments ranging from Rs 750 million (mn) to Rs 2 billion (bn) across around eight to 10 projects, focusing on development-stage residential schemes. The preferred equity structure offers institutional and sophisticated investors exposure to construction and sales cycles while limiting equity dilution for developers. Under the fund's cash-flow arrangement capital and returns will be distributed to investors before any residual payout to the developer, aligning interests in completed project monetisation. The structure is aimed at balancing risk and return for institutional investors. The strategy is positioned to complement traditional bank and non-bank financing that developers have historically used in major southern cities. Arnya, founded in 2023, manages around Rs 30 billion (bn) across multiple real estate strategies and earlier recorded a first close for a residential equity fund at more than Rs 10.3 billion (bn). The approach seeks steady cash flows from completed projects while allowing developers to retain operational control. The latest fund represents the firm’s third vehicle and expands its remit into preferred capital, reflecting a long-standing working relationship with Casagrand across more than 20 projects over 15 years. Casagrand Premier Builder operates across Chennai, Bengaluru and Hyderabad; as of June 2025 the developer reported 57 ongoing projects covering 44.10 million (mn) square feet of saleable area according to company disclosures. The fund launch is intended to offer investors access to development returns while supporting supply expansion in key southern housing markets.