Arka Unveils its second fund worth Rs 500 cr to enter the residential equity sector

Arka Investment Advisory Services Private Limited (AIASPL) has unveiled its second alternative investment fund, the Arka Hreem Real Estate Opportunities vehicle (“Fund”). Rohan Builders, a significant real estate and EPC player, will serve as the Fund’s Operating Partner through its Financial Services arm, Hreem. The Fund’s inaugural scheme, Arka Hreem Real Estate Possibilities Fund I (Arka Hreem Fund), has a target size of INR 500 crores and a green shoe of INR 250 crores, focussing on residential real estate possibilities in India. This launch follows the successful final close of Arka’s first private credit fund.

Arka Hreem Fund is strategically designed to bring in investments in India’s residential sector, with good quality counterparties across metros, which is starved for institutional equity despite recent improvements in corporate governance, sector consolidation, and high growth potential. The Fund will focus on Tier 1 cities and invest with Grade A developer partners. It is administered by AIASPL and sponsored by Arka Financial Holdings Pvt Ltd, a financial services platform funded by Kirloskar Oil Engines Limited. The unique structure with Rohan Builders as a Partner ensures a combination of extensive industry experience and strong investment acumen.

“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” said Sonit Singh, Chief Business Officer – Real Estate, Asset Management & Advisory. “Our collaboration with Rohan Builders and backing by Kirloskar Group exemplify our dedication to addressing market needs and achieving superior returns for our investors.”

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“Our engagement with Arka Investment Advisory on the Arka Hreem Fund is a strategic move to leverage our deep industry expertise, strong execution capability and extensive network in the real estate sector. We are excited about the potential this fund holds for the sector as it is not for Rohan or its projects but rather the market and are confident it will provide significant value to the investee developers and investors alike.” said Suhas Lunkad, Chairman & Managing Director of Rohan Builders.

The first fund, Arka Credit Fund I, has exhibited good performance through investments in industries such as transportation, real estate, financial services, steel manufacturing, and waste management, demonstrating its ability to help enterprises at all phases of growth.