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Verticals
Verticals -- Real Estate
First Mover
Real estate investment environment is spurred by rapid economic growth and socio-economic change in any country. The strong growth prospects in India are reflected by a rapidly expanding economy, large-scale demand for new office space, generated by rapid growth in the services sector and a large and rapidly growing middle class creating an unprecedented consumption boom that directly and indirectly generates vast demand for retail and residential real estate.

Recognizing the latent potential and investment needs of the real estate sector, IIML was among the first to take advantage of the sector opening up to foreign investment. IIML established the first real estate focused fund - IL&FS India Realty Fund I in 2005, well before the entry of most of the Real Estate players; well before the start of the real estate cycle.


Size and Portfolio - A Clear Edge
IIML has now has six Real Estate funds with US$ 2.0 bn under management. Contributors to these funds include marquee international institutional investors - investors who have participated in both the funds, committing amounts in excess of US$ 100 mn.

The Real Estate funds intend to assemble a diverse portfolio of real estate investments comprising existing assets, ground-up development projects and redevelopment properties.

The RE Funds have till date made commitments aggregating US$ 1.8 billion across 74 transactions, spread across India.

Many of these transactions are among the first in India - Slum Rehabilitation, Asset Buyouts, and adaptive re-use of industrial land.


Proprietary Deal Flow
Given the long-standing relationships developed by IIML through the management of its past funds, over half the deals have been sourced through the IIML network. Parentage, local presence and extensive relationships, results in IIML's RE Funds being optimally positioned to identify and thoroughly analyze investment opportunities, allowing select attractive projects with capable developers to be domiciled in the Fund.

IIML expects to continue to create value by:
  • Capitalizing on IL&FS's presence in infrastructure development to anticipate the path to growth, ahead of other market participants
  • Leveraging the local presence to identify opportunities in primarily off-market and limited-bid situations
  • Efficiently executing transactions, with a disciplined investment process that includes robust underwriting and in-house execution capabilities;
  • Cultivating partnerships with established and emerging local developers that lead favorable economic terms
  • Maintaining rigorous codes of corporate governance, accountability and transparency
Signature deals made by the Funds include:
  • Ansal Esencia, Gurgaon
  • DB Realty Ltd.
  • Pacifica Aurum, Chennai
  • Palais Royale, Mumbai
  • Phonix Market City, Bengaluru & Mumbai
  • The Address, Mumbai
  • QVC Realty Co. Ltd.

Representative Transactions