2025-01-23 17:31:00 :
bangalore
: Investment firm Etonhurst Capital Partners will raise its first real estate fund targeting residential redevelopment projects in Mumbai, according to a senior executive.
The fund, called Etonhurst Redevelopment Fund 1, is registered with the Securities and Exchange Board of India as a Category II Alternative Investment Fund (AIF) and aims to raise $5 billion corpus, with additional $250 Crore Green Shoe Option.
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Eatonhurst College was founded by Bamasish Paul, former managing director at Brookfield Asset Management and AIG Global Real Estate India, and Tushar Udayan Bose, former partner at CreditCapital Finance Partners.
For the redevelopment fund, the company is working with Guardian Property Consulting, which is also the main sponsor. Eatonhurst plans to source funding from high net worth individuals (HNIs) and family offices.
Mumbai’s real estate market is constrained by limited land availability, with momentum building for redevelopment projects including aging buildings, housing societies and slums. The Eatonhurst Fund aims to capitalize on this trend by investing in early-stage social regeneration projects where capital needs are highest.
“We see a lot of opportunities in the redevelopment space in Mumbai, but there is a funding gap in the market. Through this fund, we intend to invest in such early-stage development projects, which have high demand for capital,” said Managing Partner and CEO Paul said in an interview Mint.
The fund will focus on structured debt financing and is expected to execute 10-12 transactions over the next two years, with an average deal size of $50-70 Crore. Eatonhurst is targeting an internal rate of return (IRR) of 20-22%.
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“We have a strong pipeline of projects and are in conversations with builders. Going forward, for our future funds, we will consider working with strategic partners based on the theme of the specific fund,” Paul said.
Mumbai’s real estate sector has rebounded strongly post-pandemic. Mumbai Metropolitan Region (MMR) ranked first among India’s seven largest cities in residential sales in 2024, with 155,335 units sold, according to Anarock Property Advisors. The region also leads the way in new home launches, with 134,500 launched last year.
Developers from other cities, including Bengaluru-based Prestige Group and Puravankara Ltd, as well as Gurgaon-based DLF Ltd, have entered the Mumbai market with redevelopment projects. Businesses such as Raymond Realty have also undertaken several social redevelopment initiatives.
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The entry of funds such as Eatonhurst is expected to provide institutional capital for Mumbai’s redevelopment projects, further boosting activity in the city’s land-constrained market.
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