Sundaram Alternates, an arm of Chennai-based Sundaram Group, launched its fourth high-yield credit fund with a corpus of Rs 1,500 crore.The new fund seeks to raise Rs 750 crore with a green shoe option worth Rs 750 crore, taking the aggregated target size to Rs 1,500 crore. The Sundaram Alternative opportunities high yield secured real estate fund – IV is designed to provide investors access to a diversified portfolio of secured realty investments, with a focus on self-liquidating residential projects across key southern micro-markets, in addition to last-mile financing, project acquisitions, and select rescue financing, among others offering good returns.
Its earlier three real estate credit funds have delivered consistent returns to investors over the past five years, the company said in a statement without quantifying the returns. Around 75 per cent of the fund allocation will be directed towards projects with visible cash flows to ensure downside protection and regular income streams to investors and the remaining will be tactical/opportunistic investments that provide higher returns to boost portfolio performance.