#GIGANTIC DOWNLOAD STUCK SERIES#

IMRF had invested in just four projects, of which three are now stuck. That makes the fund house’s third scheme this year for which it sought an extension. The fund’s original tenure was to have come to an end on April 2, 2019, but it sought its first of the two allowable extensions in a communication sent to investors on March 19, 2019. Launched in April 2012, the fund aimed to capitalise on projects that were into slum rehabilitation in Mumbai. The worst of the lot appears to be Piramal Fund Management’s other scheme called Indiareit Mumbai Redevelopment Fund (IMRF).

Its funds are stuck in the remaining five investments, including in the project of a Pune-based real estate developer, Darode Jog Developers, against which Piramal had initiated bankruptcy proceedings earlier, but is now looking for an out-of-court settlement. Of the 10 investments it had made, it has been able to fully exit four and partially get out of one. The scheme will now aim to close on July 31, 2020, although it is allowed to get extend the period by yet another year, according to the fund’s features. The fund has now sought the first of its two extensions, as per a communication it sent to its investors in July 2019. Two of its investments (35 per cent of its overall initial investment) are stuck, it said in a communication sent to investors in May 2019.Īnother of Piramal’s scheme, Indiareit V, which was launched in 2013, was to be redeemed on July 31, 2019.

Indiareit Scheme-IV has already extended its tenure by two years after its original closing date of June 1, 2017. Three of the five real estate funds launched by Piramal Fund Management appear to be in a mess. Things aren’t much better with many of the other funds in the category either. Revealing rent at one of India's most expensive 1BHK apartments | The Tenant In reality though, most of these investments turned sour for a variety of reasons over the past few years because several real estate projects across the country could not be completed on time. Most of these investments are aimed at generating a return (internal rate of return since money is given – and projects are exited – over a period of time) of 15-25 per cent. The investments are made either as equity or debt instruments. This is the sad reality of real estate funds in India.Ī real estate fund collects money from several investors and invests in real estate projects. Forget returns, investors in many real estate funds in India have struggled to get back even their principal amount. In the meanwhile, things have gone horribly wrong in the real-estate segment over the past several years.

In other words, the underlying securities that most of these funds intended to invest in, were secured. Real estate funds have long held a fancy for many high-networth individuals (HNIs), especially after property prices soared between 20. The upside? A 15-20 per cent return over three to five years. Buying several of them, of course, through an instrument called a real estate fund was a supposedly great decision. And buying an independent house sounds that much more wonderful. Real-estate has always been a preferred investment avenue for most Indians. Glossy images of high-rises, super-luxury properties that rise like a phoenix from the ashes they could be all yours if you bought that one instrument. The brochures are designed to make you reach for the cheque-book. Unlocking opportunities in Metal and Mining.

#GIGANTIC DOWNLOAD STUCK SERIES#

Interview Series Business In The Week Ahead.

Gigantic download stuck