Chasing City Growth: Meenakshi Alternates Sets Sights on Urban Realty with ₹700 Crore AIF

Meenakshi Alternates, the investment arm of Hyderabad-based Meenakshi Group, has launched its first real estate-focused alternative investment fund (AIF) with a total target of ₹700 crore. This SEBI-approved Category II fund, called the Meenakshi Real Assets Fund, aims to tap into the growing demand for high-quality real estate investments in India’s top cities.

 

Key Highlights:

 

The fund is structured with a base size of ₹350 crore and an additional ₹350 crore greenshoe option, allowing flexibility based on investor interest. Meenakshi Group itself has committed up to 20% of the fund’s size as sponsor capital, signaling strong confidence in the venture.

 

Over a six-year period, the fund will pursue six to eight high-conviction deals, focusing on self-liquidating real estate assets that offer both steady cash flows and equity upside. Each investment could be as large as ₹70 crore, with an emphasis on Tier I developers and leading players in high-potential micro-markets.

 

The fund follows a hybrid strategy, blending debt and equity investments to balance risk and return. About 70% of the portfolio will be in debt, ensuring regular returns, while the rest will target equity in projects with strong growth prospects.

 

Meenakshi Alternates is already evaluating three deals under due diligence and has received early commitments from the group’s network and select investors.

 

The group brings a strong track record, with 13 million sq. ft. of completed real estate, 9.5 million sq. ft. in the pipeline, 371 MW of power projects, and over 650 lane kilometers of highways.

 

This move positions Meenakshi Alternates as a serious player in India’s real estate investment landscape, offering institutional-grade opportunities for investors looking to benefit from the country’s urban growth story.

 

Sources: Economic Times, VCCircle, Entrepreneur India