Mumbai-based Arnya Realestates Fund Advisors has launched a ₹750-crore Category II Alternative Investment Fund (AIF) in partnership with realty developer Casagrand Premier Builder, marking the official launch of their joint equity fundraising initiative. The fund, Arnya Real Estate Fund III - Preferred Capital, will invest ₹75 crore to ₹200 crore across around 8-10 projects, with the fund curated exclusively for projects to be developed by Casagrand. According to Economic Times, the fund has been structured as a Securities and Exchange Board of India (SEBI)-registered Category II AIF with an investor-first cash flow waterfall, where capital and returns are distributed to investors before residual distributions accrue to the developer. Sharad Mittal, Founder & CEO of Arnya Realestates Fund Advisors, stated that the focus will be on mid-income to luxury range projects in southern markets, with the fund operating as a six-year structure making project-level investments across Bengaluru, Hyderabad and Chennai. The fund structure provides preferred equity treatment to investors, giving them the first right over profits from underlying projects as well as distribution proceeds at the fund level.
The fund structure provides preferred equity treatment to investors, giving them the first right over profits from underlying projects as well as distribution proceeds at the fund level. Casagrand has committed a minimum of ₹75 crore or 15% of the fund corpus, whichever is higher, to ensure alignment of interests with fund investors. As reported by Economic Times, the fund will focus on real estate opportunities across Chennai, Bengaluru and Hyderabad, with investments ranging between ₹75 crore and ₹200 crore across around 8-10 projects. The fund is structured to provide institutional investors exposure to real estate development margins through a preferred equity investment structure, with Casagrand responsible for end-to-end execution of all projects. The launch comes as residential real estate activity remains strong in major southern markets, with developers increasingly turning to institutional capital to fund project expansion alongside traditional sources such as bank and non-bank financing. The fund's deployment across multiple projects will also provide a fresh indicator of where institutional investors see long-term residential demand in India's major urban markets.
According to Economic Times, Arnya Realestates Fund Advisors, founded in 2023, is now launching its third fund and has built a platform managing approximately ₹3,000 crore across multiple real estate strategies, including debt, equity, preferred capital and core assets. The firm achieved the first close of its residential equity fund at over ₹1,030 crore earlier this year. Before this partnership, Arnya had launched Arnya Real Estate Fund-Equity in partnership with developer Supreme Universal, which has already received ₹1,200 crore in commitments from family offices and UHNWIs. The company also launched its maiden real estate fund—Arnya Real Estate Fund-Debt in 2024. The partnership follows a relationship spanning more than 15 years, during which Arnya founder and CEO Sharad Mittal has worked with Casagrand on more than 20 development projects. Arnya has previously invested in Casagrand projects, including a ₹170 crore investment across two residential developments in Chennai. The firm has previously deployed capital across residential projects in cities including Mumbai, Pune, Bengaluru, Chennai and Hyderabad.
As reported by Economic Times, Casagrand Premier Builder maintains a portfolio of over 88 million sq ft across 180 projects, with projects spanning Chennai, Bengaluru, Hyderabad, Coimbatore, Pune and Dubai. As of June 30, 2026, the developer had 103 completed projects with 21.79 million sq ft of saleable area, 57 ongoing projects spanning 44.10 million sq ft and 21 forthcoming projects with an estimated saleable area of 23.81 million sq ft. The company has emerged as one of the stronger housing markets in southern India, supported by infrastructure expansion, rising urbanisation and increasing consolidation towards branded developers. In June, Casagrand secured SEBI clearance to raise ₹1,220 crore through an initial public offering (IPO), with the offering comprising a fresh issue of equity shares worth ₹1,200 crore and an offer for sale (OFS) up to ₹20 crore by promoters. The partnership gives the fund access to a developer with a significant presence in South India's residential market.
As reported by Economic Times, the fund is expected to appeal to family offices, ultra-high-net-worth individuals, institutions and sophisticated investors seeking diversified exposure to India's residential real estate market through a regulated institutional investment platform. Arun Mn, Founder, Chairman and Managing Director of Casagrand, emphasized that institutional capital will play an increasingly important role in long-term residential real estate growth, focusing on disciplined execution, transparency and aligned objectives. Sharad Mittal, Founder & CEO of Arnya Realestates Fund Advisors, noted that India's residential property sector has entered a structurally stronger phase, driven by regulatory reforms, increasing formalisation and sustained demand for organised developers. The fund's focus on society redevelopment projects in Mumbai aligns with the broader trend of institutional investors seeking investment strategies that offer an improved balance between risk and return. Capital from AIFs can support land acquisition, construction and project execution while allowing investors to participate in development-led returns, with the ₹750 crore fund potentially strengthening the flow of institutional capital into residential development across Chennai, Bengaluru and Hyderabad.
