The firm made Rs. FundsIndia has partnered with Private Wealth to raise 1,000 crore, including Rs. 200 crore green shoe option.
The launch builds on the back of a strong track record from its previous funding. The first scheme, AYF I, involved four rent-yielding office assets in Bengaluru and Mumbai worth around Rs. 120 crore with investments fully operational, yielding a weighted average yield of 8.6%.
Meanwhile, AYF II has so far raised Rs. 135.9 crore has been collected, of which Rs. 46.41 crore is deployed in warehouse and office assets in Mumbai, generating a yield of 8.2%.
With AYF III, Alt Capital aims to invest in stable, income-generating real estate with a focus on pre-lease grade A and A+ office and warehousing assets – which are seeing strong demand in India.
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The strategy deliberately avoids greenfield development risks, instead prioritizing assets with predictable cash flows. The fund is targeting an internal rate of return (IRR) of 16-18% over an investment horizon of 4-5 years, supported by prudent leverage.
The investment team currently invests around Rs. 2,520 crore is evaluating a strong pipeline of opportunities.
India’s commercial real estate market remains buoyant due to structural factors such as increasing global outsourcing and expansion of Global Capability Centers (GCCs).
Multinational corporations are increasing operations in India to take advantage of costs, while domestic technology companies are also expanding amid office-to-office trends. Additionally, an easier interest rate cycle is expected to support cap rate compression, potentially increasing exit valuations for investors.
Alt Capital’s leadership team brings significant organizational expertise, having previously played a key role in building the office portfolio at Blackstone Group. Collectively, the team has more than $3 billion of real estate investment experience.
Commenting on the launch, Alt Capital CEO and Co-Founder Kunal Moktan said the new fund aims to provide investors with exposure to income-generating commercial real estate, with diversification across multiple assets and the potential for enhanced returns through portfolio-level exits.
Echoing similar views, FundsIndia Private Wealth CEO Srinivas Mendu said the partnership reflects Alt Capital’s strong conviction in its institutional pedigree and disciplined investment approach. He highlighted that the focus on pre-leased assets offers stability, predictable income and attractive risk-adjusted returns for investors without the developer’s risk premium.
AYF III will primarily target institutional investors, high-net-worth individuals (HNIs), family offices as well as select domestic and NRI investors, giving them an opportunity to participate in India’s evolving commercial real estate growth story.
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