Primary Product Focus

Investing in high-yielding credit instruments issued by real estate and allied sectors in India, the fund aims to deliver attractive, risk-adjusted returns through:

• High-yielding debentures (listed/unlisted, rated/unrated)
• Mezzanine securities and preference shares
• Select REITs, InvITs, securitized debt instruments and PTCs
• Secured by monetizable real estate assets, cashflows, guarantees, and escrows

The fund’s strategy is to finance brownfield residential and commercial projects post approvals, focusing on construction financing, refinancing, last-mile funding, and bridge financing opportunities.

Fund Features

• Target Fund Size: INR 1,000 – 1,500 crores (incl. green shoe option)
• Fund Life: 5 years (extendable by 2 years with investor approval)
• Quarterly Distributions: Cash-in, Cash-out structure; amortizing loans reduce exposure over time
• Sponsor Commitment: Up to 15% of fund size (subject to SF board approval)
• Estimated Investment Tenure: 3–4 years (within fund life)

Portfolio Construction & Deal Metrics

• Number of Investments: 15–20 deals over fund life
• Ticket Size: Typically < INR 100 crores per deal
• Single Deal Exposure: ~10–15% (with exception approvals up to 25%)
• Geographical Focus: Predominantly South India (Chennai, Bengaluru, Hyderabad), opportunistic exposure to MMR & Pune
• Security Cover: 1.5–2.0x via multiple running projects, escrowed cashflows, pledge of promoter interests, corporate/personal guarantees
• Sector Focus: Residential real estate, commercial, logistics (warehousing, data centers), hospitality, healthcare facilities

Key Philosophy & UnderWriting

• 100% brownfield projects (post approvals; no greenfield equity risk)
• Amortizing structures ensure steady quarterly repayments and lower residual exposure
• Exits primarily from project operating cashflows; upside from prepayments or secondary sales
• Rigorous risk management & monitoring: daily escrow tracking, quarterly site visits, cashflow covenants, and strong security structures
• Zero capital loss track record across previous 4 real estate funds (73 deals, ~INR 4140 crores deployed, ~20% exit IRRs)

Sustainability & ESG Integration

SA RE Fund V is positioned as a “Green Built Fund”, fully aligned with Sundaram Alternates’ ESG framework:

• 100% portfolio integration with ESG screening
• Preference for resource-efficient, climate-aligned projects (certifications: EDGE, IGBC)
• Active monitoring of energy, water, and carbon efficiency metrics across projects
• Transparent reporting of ESG impact to investors

Disclaimer

Securities investments are subject to market risks and there is no assurance or guarantee that the objectives of the investments will be achieved.

AIF schemes are not guaranteed and assured income schemes. Investments in AIF are subject to various risks viz. market risk, credit risk, investment risk, etc. and subject to various forces and factors beyond the AMC’s control.

This is for informational purposes only and does not constitute a prospectus, information memorandum, or an offer to buy any securities or other investments. Please read the fund documents carefully before investing.