Arka Financial Holdings Pvt Ltd, supported by Kirloskar Oil Engines Limited, has announced the launch of its second fund, the Arka Hreem Fund, with a substantial corpus of ₹500 crore. This new initiative aims to bolster equity investments in India’s residential sector, particularly targeting Tier 1 cities and collaborating with Grade A developers.
Fund Overview:
The Arka Hreem Fund is strategically crafted to address the gap in institutional equity within India’s residential real estate market. Despite recent improvements in corporate governance, sector consolidation, and high growth potential, institutional investment in this sector has remained limited. The fund is managed by AIASPL and is partnered with prominent industry player Rohan Builders, ensuring a blend of deep sector knowledge and strong investment expertise.
Sonit Singh, Chief Business Officer – Real Estate, Asset Management & Advisory at Arka Financial Holdings, expressed enthusiasm about the fund’s launch: “We are proud to introduce the Arka Hreem Real Estate Opportunities Fund as a strategic investment opportunity that aligns with our commitment to delivering exceptional value to all our stakeholders. Our collaboration with Rohan Builders and the backing by Kirloskar Group exemplify our dedication to addressing market needs and achieving superior returns for our investors.”
Suhas Lunkad, Chairman & Managing Director of Rohan Builders, highlighted the strategic significance of the partnership: “Our engagement with Arka Investment Advisory on the Arka Hreem Fund leverages our deep industry expertise, execution capability, and extensive network in the real estate sector. We are excited about the potential this fund holds, not just for Rohan Builders, but for the broader market. We are confident it will deliver significant value to both investee developers and investors.”
The Arka Hreem Fund follows the success of Arka’s first fund, the Arka Credit Fund I, which has demonstrated strong performance with investments across various sectors including transportation, real estate, financial services, steel manufacturing, and waste management. This track record underscores Arka’s ability to support companies across diverse sectors and growth stages.
The launch of the Arka Hreem Fund represents a significant step in addressing the need for institutional equity in India’s growing residential real estate market, promising to drive value and growth for developers and investors alike.
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