Sundaram Alternates’ ESG Realty Fund Tops Rs 10bn
Real Estate

Sundaram Alternates’ ESG Realty Fund Tops Rs 10bn

Sundaram Alternates, the alternative investment arm of the Sundaram Finance Group, said its SA Real Estate Credit Fund V has crossed Rs 10 billion in capital commitments within three months of its launch in October 2025. The fund is India’s first ESG-aligned real estate credit fund.

The company said the milestone reflects continued investor confidence in its Category II alternative investment fund platform and performing real estate credit strategy. The fundraise remains open and is expected to close by March 2026, with a targeted final corpus of Rs 15 billion to Rs 20 billion.

The fund has attracted commitments from a diversified investor base, including insurance companies, family offices, corporate treasuries and ultra-high-net-worth investors. It also includes a sponsor commitment from the Sundaram Finance Group, reinforcing alignment of interests.

Karthik Athreya, Managing Director of Sundaram Alternates, said crossing Rs 10 billion in commitments within three months underscores investor confidence in the firm’s underwriting discipline and risk framework. He added that the momentum reflects nearly a decade of effort in building a robust risk management platform, with a continued focus on disciplined capital deployment, capital protection and long-term investor relationships.

Fund V follows a performing credit strategy centred on senior secured, amortising lending to brownfield, cash-generating residential projects. The approach prioritises downside protection through conservative loan-to-value structures and strong collateral coverage. ESG considerations are embedded into underwriting and portfolio monitoring, informing asset selection and governance rather than operating as a separate overlay.

Sundaram Alternates has raised over Rs 38 billion across five real estate credit funds to date, delivering internal rates of return in the range of 18 per cent to 19 per cent. The platform has maintained a zero capital loss record since inception in 2017, with full capital repayment and no defaults across multiple market cycles, including NBFC liquidity stress, regulatory changes, the COVID-19 pandemic and recent inflationary pressures.

The company said investor interest in ESG-integrated private credit is rising as the segment emerges as a key solution to India’s real estate financing needs. The sector is projected to reach $1 trillion by 2030, contribute around 13 per cent to GDP, and is supported by strong indicators such as 89 million sq ft of office leasing in 2024 and a 35 per cent year-on-year rise in foreign direct investment inflows in the first quarter of 2025.

Sundaram Alternates, the alternative investment arm of the Sundaram Finance Group, said its SA Real Estate Credit Fund V has crossed Rs 10 billion in capital commitments within three months of its launch in October 2025. The fund is India’s first ESG-aligned real estate credit fund. The company said the milestone reflects continued investor confidence in its Category II alternative investment fund platform and performing real estate credit strategy. The fundraise remains open and is expected to close by March 2026, with a targeted final corpus of Rs 15 billion to Rs 20 billion. The fund has attracted commitments from a diversified investor base, including insurance companies, family offices, corporate treasuries and ultra-high-net-worth investors. It also includes a sponsor commitment from the Sundaram Finance Group, reinforcing alignment of interests. Karthik Athreya, Managing Director of Sundaram Alternates, said crossing Rs 10 billion in commitments within three months underscores investor confidence in the firm’s underwriting discipline and risk framework. He added that the momentum reflects nearly a decade of effort in building a robust risk management platform, with a continued focus on disciplined capital deployment, capital protection and long-term investor relationships. Fund V follows a performing credit strategy centred on senior secured, amortising lending to brownfield, cash-generating residential projects. The approach prioritises downside protection through conservative loan-to-value structures and strong collateral coverage. ESG considerations are embedded into underwriting and portfolio monitoring, informing asset selection and governance rather than operating as a separate overlay. Sundaram Alternates has raised over Rs 38 billion across five real estate credit funds to date, delivering internal rates of return in the range of 18 per cent to 19 per cent. The platform has maintained a zero capital loss record since inception in 2017, with full capital repayment and no defaults across multiple market cycles, including NBFC liquidity stress, regulatory changes, the COVID-19 pandemic and recent inflationary pressures. The company said investor interest in ESG-integrated private credit is rising as the segment emerges as a key solution to India’s real estate financing needs. The sector is projected to reach $1 trillion by 2030, contribute around 13 per cent to GDP, and is supported by strong indicators such as 89 million sq ft of office leasing in 2024 and a 35 per cent year-on-year rise in foreign direct investment inflows in the first quarter of 2025.

Next Story
Real Estate

CREDAI-MCHI to Host 10th Design & Construction Conference

CREDAI-MCHI will host the 10th anniversary edition of its Design & Construction Conference on August 19, 2026, at the Jio World Convention Centre in Mumbai.The event is expected to bring together more than 500 procurement leaders, construction heads, architects, consultants and senior real estate decision-makers, alongside over 50 construction and ancillary brands.The conference will feature product launches, technology showcases, knowledge sessions, strategic business-to-business networking and recognition of procurement professionals contributing to the transformation of the construction..

Next Story
Infrastructure Energy

BorgWarner Wins Extension for High-Voltage Inverter Programmes

BorgWarner has secured a major extension of several high-volume high-voltage inverter programmes from a leading European automotive manufacturer.The contracts cover updated inverter designs for plug-in hybrid and 800V battery-electric vehicle applications. Production is scheduled to begin in 2029.Isabelle McKenzie, President and General Manager, BorgWarner PowerDrive Systems, said the programme extensions demonstrate the company’s position in power electronics and reflect the strength of its technology, in-house expertise and customer relationships.For plug-in hybrid vehicles, BorgWarner wil..

Next Story
Infrastructure Urban

Castrol India Q2 Profit Rises 43% to Rs 3.48 bn

Castrol India reported a 43 per cent year-on-year increase in profit after tax to Rs 3.48 billion for the quarter ended June 30, 2026, supported by growth across its consumer, industrial and institutional businesses.Revenue from operations increased 25 per cent to Rs 18.71 billion during the second quarter of 2026, compared with Rs 14.97 billion in the corresponding period of 2025. EBITDA rose 41 per cent to Rs 4.94 billion from Rs 3.50 billion.Sequentially, revenue increased from Rs 15.45 billion in the first quarter of 2026, while EBITDA rose from Rs 3.29 billion. Profit after tax increased ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement