Sundaram Alternatives’s third real estate fund launched

14 Jun 2021 CW Team

The real estate concentrated fund is a five year close-ended Category-2 alternative investment fund (AIF).

A press release issued by the company told the media that SA's High-Yield Secured Debt Fund-1 had repaid approximately 61% of capital in less than three years since final closing with a gross portfolio Internal Rate of Return (IRR) of around 19%.

It added that the fund quarterly distributed the interest income to investors and continued to do so despite the problematic Covid-19 environment. The second real estate fund, which is High-Yield Secured Debt Fund-2, has been closed recently and is in the phase of active portfolio construction currently.

The release added that the fund has already distributed income of drawn capital amounting to 10.3% to its investors as interest coupons over the last more than one year.

The fund is going to invest in debentures and mezzanine securities of Indian entities supported by real assets that might include real estate, logistics, hotels, and healthcare facilities. Investments will largely be supported by hard real estate collaterals, access to cash flows, and other securities designed to protect capital and return attractive IRRs on a gross basis.

The target size of the find is Rs 750 crore, plus a greenshoe of Rs 250 crore. The minimum investment in this fund is Rs 1 crore. The head of the strategy (alternative credit)is Karthik Athreya, and Kumaran Chandrasekaran will manage the fund. The fund's sponsor is Sundaram Finance, and the fund is open for subscription to domestic and international sophisticated investors.

Sundaram Alternate Assets Ltd (SA) is a 100% subsidiary of SAMC.

Image Source

Also read: Assets over Rs 3.5 trillion to be monetised via InvIT, REIT in next one year

Also read: Model Tenancy Act approved: Here’s what the industry thinks

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Sundaram Alternatives has launched its third real estate fund, Sundaram Alternative Opportunities Series–High Yield Secured Real Estate Fund-3, an alternative investment arm of Sundaram Asset Management Company Ltd (SAMC), owned by Sundaram Finance Ltd, a leading non-banking financial company in India. The real estate concentrated fund is a five year close-ended Category-2 alternative investment fund (AIF). A press release issued by the company told the media that SA's High-Yield Secured Debt Fund-1 had repaid approximately 61% of capital in less than three years since final closing with a gross portfolio Internal Rate of Return (IRR) of around 19%. It added that the fund quarterly distributed the interest income to investors and continued to do so despite the problematic Covid-19 environment. The second real estate fund, which is High-Yield Secured Debt Fund-2, has been closed recently and is in the phase of active portfolio construction currently. The release added that the fund has already distributed income of drawn capital amounting to 10.3% to its investors as interest coupons over the last more than one year. The fund is going to invest in debentures and mezzanine securities of Indian entities supported by real assets that might include real estate, logistics, hotels, and healthcare facilities. Investments will largely be supported by hard real estate collaterals, access to cash flows, and other securities designed to protect capital and return attractive IRRs on a gross basis. The target size of the find is Rs 750 crore, plus a greenshoe of Rs 250 crore. The minimum investment in this fund is Rs 1 crore. The head of the strategy (alternative credit)is Karthik Athreya, and Kumaran Chandrasekaran will manage the fund. The fund's sponsor is Sundaram Finance, and the fund is open for subscription to domestic and international sophisticated investors. Sundaram Alternate Assets Ltd (SA) is a 100% subsidiary of SAMC. Image Source Also read: Assets over Rs 3.5 trillion to be monetised via InvIT, REIT in next one year Also read: Model Tenancy Act approved: Here’s what the industry thinks

Infrastructure Transport

01 Sep 2025

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

Infrastructure Energy

01 Sep 2025

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Infrastructure Transport

09 Sep 2025

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..