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Mt. K Kapital raises over Rs 350 crore as residential fund’s first close from SBI, Famy Care

Mt. K Kapital raises over Rs 350 crore as residential fund’s first close from SBI, Famy Care

Synopsis Around 50% of the funds raised are already in the process of being deployed towards three identified redevelopment projects in the Mumbai Metropolitan Region (MMR). The identified investment pipeline includes two projects in Mumbai’s plush Bandra locality and Andheri, with saleable areas ranging between 50,000 and 100,000 sq ft each.

Real estate-focused fund management company Mt. K Kapital has raised over Rs 350 crore through the initial close of its residential development fund from anchor investors like State Bank of India (SBI), pharmaceutical major Famy Care, Rustomjee Group, family offices and high-net-worth individuals (HNIs).

Around 50% of the funds raised are already in the process of being deployed towards three identified redevelopment projects in the Mumbai Metropolitan Region (MMR). The identified investment pipeline includes two projects in Mumbai’s plush Bandra locality and Andheri, with saleable areas ranging between 50,000 and 100,000 sq ft each.

The fund aims to invest in 8-10 projects in the Mumbai region, with a focus on redevelopment, with Rustomjee Group as its development partner. Mt. K Resi Development Fund, a category II alternative investment fund (AIF) registered with the Securities & Exchange Board of India (Sebi), will invest in real estate projects across the spectrum.

“We are delighted to have reached this milestone of raising Rs 350 crore from investors who are not just industry stalwarts, but also long-term visionaries. We are fortunate to be backed by Rustomjee, and our intention is to bring the right kind of capital to the property sector in times to come,” said Binitha Dalal, founder & managing partner, Mt. K Kapital.

According to her, anchors like Famy Care, SBI and the overall positive response towards the fund have strengthened the company’s belief in building the platform as a differentiator.

“The Mt. K Resi Development Fund is being led by a highly experienced team, and we feel very strongly about the potential that the fund is designed to offer. As investors, we firmly believe that the team has identified and developed the right investment strategy. Through this association, the intent is to create a long-term relationship with the team and continue to grow together,” said J P Taparia, founder & chairman, Famy Care.

The fund’s core team, led by Dalal and Abdeali Tambawala, has over five decades of combined experience across real estate and fund management. The fund, with a total tenure of five years, will comply with environmental, social and corporate governance (ESG) requirements, with sustainability being the key focus. It will provide the opportunity for investors to participate in the equity returns of real estate projects with an established developer.

“We are proud to back Mt. K Kapital and its foray into the fund management business. Through this fund, we will continue to leverage our development expertise in the Mumbai region while collaborating to maximise value for investors,” said Rustomjee Group CMD Boman Irani.

According to him, this is a new pool of capital that works on the principles of win-win for all stakeholders and partners.

Anarock Capital has played a key role in raising capital for the fund and will continue to work jointly with the team.

Leveraging its unique advantage of partnering with one of the country’s key developers in its biggest property market, Mt. K Kapital is bullish on the Mumbai region from an investment perspective. The fund’s investment committee comprises industry experts and large investors, ensuring the highest level of corporate governance.

Rustomjee Group has so far developed 20 million sq ft of real estate through its completed projects. The developer’s portfolio includes 32 completed projects, 12 ongoing projects, and 19 forthcoming projects across the Mumbai Metropolitan Region (MMR). These include the affordable, mid- and mass-market, aspirational, premium, and super-premium segments.

This includes two township developments in Thane and Virar, as well as large residential developments, office complexes, retail, healthcare, and educational institutions spread across Mumbai city in Prabhadevi, Bandra, Khar, Andheri, Kandivali, Borivali and Bhandup.

Source: The Economic Times