How can a real estate fund be successful?
Real Estate

How can a real estate fund be successful?

It is important to have a clear strategy for the fund,” says Karan Bolaria, CEO, Godrej Fund Management. “Strategising well increases the chances of success of the fund; it involves deciding exactly what sort of real estate you will invest in by pre-identifying micro-markets with high potential and then using a strong asset selection framework to zero in on deals to fund.”

“Discipline in portfolio construction is also very important; it appropriately distributes risk,” adds Bolaria. “Imposing caps on a fund’s exposure to a single market or deal ensures that any one segment is not over-leveraged.”
Currently, Godrej Fund Management invests equally in the residential and commercial segments and, within these, in clearly defined niches.

“Our investments in residential realty are primarily in projects for the middle classes; this is an area we understand well, in which we have proven management capabilities,” says Bolaria. “In the commercial space, we invest in high-end offices for industries other than information technology; essentially, premium spaces that may be challenging to execute with a special focus on sustainability.”

Monitoring the use of funds also contributes to their success.

“We monitor the execution of projects by analysing propriety as well as third-party data to make sure we are staying with the original plan,” says Bolaria. “We enter into regular dialogue with the project teams. And while we stay out of residential operations, we do get involved whenever the project encounters a hurdle.”

- CHARU BAHRI
 

It is important to have a clear strategy for the fund,” says Karan Bolaria, CEO, Godrej Fund Management. “Strategising well increases the chances of success of the fund; it involves deciding exactly what sort of real estate you will invest in by pre-identifying micro-markets with high potential and then using a strong asset selection framework to zero in on deals to fund.” “Discipline in portfolio construction is also very important; it appropriately distributes risk,” adds Bolaria. “Imposing caps on a fund’s exposure to a single market or deal ensures that any one segment is not over-leveraged.” Currently, Godrej Fund Management invests equally in the residential and commercial segments and, within these, in clearly defined niches. “Our investments in residential realty are primarily in projects for the middle classes; this is an area we understand well, in which we have proven management capabilities,” says Bolaria. “In the commercial space, we invest in high-end offices for industries other than information technology; essentially, premium spaces that may be challenging to execute with a special focus on sustainability.” Monitoring the use of funds also contributes to their success. “We monitor the execution of projects by analysing propriety as well as third-party data to make sure we are staying with the original plan,” says Bolaria. “We enter into regular dialogue with the project teams. And while we stay out of residential operations, we do get involved whenever the project encounters a hurdle.” - CHARU BAHRI  

Next Story
Resources

Madhya Pradesh Champions Inclusive Tourism at Heritage Sites

On the occasion of World Heritage Day, Madhya Pradesh is taking a significant step toward inclusive tourism by making its historical sites accessible to all — especially persons with disabilities. The state is rolling out its ‘Accessibility Infrastructure and Development’ project at Maheshwar, Mandu, Dhar, and Orchha, aiming to create a more welcoming experience at these iconic cultural destinations.The initiative, under the leadership of Chief Minister Dr Mohan Yadav and Tourism Minister Shri Dharmendra Bhav Singh Lodhi, includes infrastructure upgrades such as ramps, Braille signage, w..

Next Story
Resources

Runwal Realty Onboards Sonam Kapoor as Brand Ambassador

Real estate major Runwal has unveiled a refreshed identity as Runwal Realty, signalling a renewed commitment to crafting spaces that stand the test of time. With this refresh, the brand unveils its new philosophy: “Building for Generations to Come” and welcomes Bollywood star and global fashion icon Sonam Kapoor as its brand ambassador. This evolved identity reflects Runwal Realty’s commitment to creating not just homes, but heirlooms—crafted through visionary design, meticulous planning, global design expertise and an unwavering focus on quality. With the customer at its core, each de..

Next Story
Infrastructure Urban

Emerging Trends in Infrastructure and Transport 2025: KPMG

KPMG’s latest report, The Great Reset: Emerging Trends in Infrastructure and Transport 2025 edition, sheds light on the profound changes transforming the global infrastructure landscape. As industries adapt to the challenges posed by climate change, economic pressures, and technological advancements, the report identifies key trends and provides actionable insights for leaders in infrastructure and transport sectors. “In today’s interconnected world, the lack of standardized supply chain practices is not just an operational challenge—it’s an environmental and economic one. We’..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?