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
Infrastructure Transport

Odisha to Get Kharagpur-Visakhapatnam Expressway Soon: Minister

A new greenfield highway connecting Kharagpur in West Bengal and Visakhapatnam in Andhra Pradesh, passing through Odisha, is set to be constructed soon. This expressway is poised to become a vital logistics corridor, enhancing high-speed transportation in the region. Works Minister Prithviraj Harichandan shared that preliminary preparations for the project have already commenced. He emphasised that the expressway would play a crucial role in the Gati Shakti Framework of the Central government, describing it as a groundbreaking initiative in road construction for Odisha. Greenfield roads typi..

Next Story
Infrastructure Urban

LTTS wins project to develop smart cities in Colorado USA

Mid-sized Indian IT services company L&T Technology Services (LTTS) announced on Monday a strategic partnership with the Colorado Smart Cities Alliance (CSCA) to develop smart city projects across Colorado by integrating innovation and technology. In a regulatory filing, LTTS stated that the collaboration would utilize its advanced engineering expertise to support CSCA's mission of enhancing urban living and creating sustainable ecosystems through smart city solutions. The partnership aims to develop sustainable, efficient, and technologically advanced communities by pooling resources and exp..

Next Story
Infrastructure Transport

Bengaluru Metro to Expand to 175 km by 2026, Boosting Urban Mobility

Bengaluru’s metro network is set for a major expansion, aiming to extend its total length to 175 km by 2026. This ambitious project is part of the Namma Metro initiative, designed to improve connectivity across the city, alleviate traffic congestion, and promote sustainable urban mobility. The expansion involves constructing new metro corridors, such as the Purple Line and the Outer Ring Road-Airport Line, which will link major city hubs, commercial centres, and residential areas. This development is expected to enhance accessibility for commuters throughout Bengaluru. A key highlight of t..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000