AMPLUS CAPITAL TO RAISE UP TO ₹250 CR FOR REALTY FUND

Amplus Capital Advisors Pvt Ltd, part of the Lalbhai Group whose flagship company is Arvind Ltd, plans to raise its third real estate-focused fund which would offer structured debt financing to residential projects in top cities.

The firm will start raising the new Amplus Realty Fund—III around mid-October and plans to mop up between ₹200-250 crore.

The new fund will see Amplus stepping away from its two earlier, equity-focused funds— Amplus Realty Fund I and II— and focus on debt financing, with last-mile project financing comprising a significant part.

The new fund is significant in a post-RERA world, when realty firms cannot afford to defer delivery of homes and want to avoid the brunt of penalties due to construction delays.

“There are many developers who are doing well, are asset rich but are facing temporary liquidity crunch. These are good opportunities for debt financing, particularly last-mile funding, where you can enter and exit within twoand-half years,” said Anuranjan Mohnot, MD at investment firm Amplus Capital Advisors Pvt Ltd.

Amplus raised its first fund of Rs130 crore in 2013, made eight investments and has returned 80% of the money back to investors. For its second fund, raised in 2015-16, it raised ₹230 crore and has made a couple of investments in Ahmedabad and is in the process of investing in Chennai.