Investment Strategy
The fund intends to capitalize on opportunities emerging from (a) slew of initiatives taken by the Government to boost Housing for All and (b) Distressed opportunities created post Demonetization and GST. As a part of the investment strategy, Housing Advantage fund will take leverage (max leverage of 1:1) enhance post tax returns. The investment portfolio of the fund shall be similar to India Housing Fund
Allocation Sector Wise :
| PMAY – CLSS | 80 IBA | Mid-Income Housing | Mid-Income Housing | |
|---|---|---|---|---|
| Fund Allocation | Upto 30% | Upto 50% | Upto 50% | Upto 30% |
Key Terms :
| Structure | Category III Alternative Investment Fund |
|---|---|
| Target Fund Size | INR 2,000 Cr |
| Sponsor Commitment | 5% or INR 10 Cr whichever is lower |
| Fund Term | 5 years from the date of final closing*, with possible extension of 1+1 year, subject to approval of two-thirds of the unit holders by value of their investment in the Fund |
| Drawdown Tenure | Up to 24 months from the close of Initial Closing |
| Initial Contribution | 25% of the Commitment Amount |
| Target Return1 (Gross IRR) | 24-26% per annum( pre-tax post expenses) in INR terms |
