Bain Capital-backed 360 ONE WAM Ltd (formerly known as IIFL Wealth) on Friday said it has picked up a minority equity stake in NeoLiv, a residential real estate investment platform.
The development comes as the real estate platform has received approval from the Securities and Exchange Board of India (SEBI) to raise its maiden investment vehicle. The Category-II alternative investment fund (AIF) aims to raise about $150 million and has a green shoe option of $60 million.
While the size and value of 360 ONE’s stake were undisclosed, the real estate platform plans to utilize the proceeds to set up investment, corporate governance and execution processes, and hire people.
This is the second acquisition of an investment platform within eight months by 360 ONE, led by founder and CEO Karan Bhagat. In November last year, it bought a 91% stake in angel investment platform Mumbai Angels.
NeoLiv was floated by Mohit Malhotra, the former managing director and CEO of Mumbai-listed Godrej Properties, this January. The platform aims to invest in middle-income housing in the Delhi NCR and Mumbai MMR markets through its investment vehicle. The Mumbai-based platform also has a development arm.
According to property consultancy firm ANAROCK Capital, mid-segment homes priced between Rs 40 lakh and Rs 80 lakh dominated new supply with a 31% share, followed by premium segment homes in the Rs 80 lakh to Rs 1.5 crore range, and luxury segment homes priced above Rs 1.5 crore, with 27% and 23% share, respectively.
Among other developments in the residential real estate market, Sundaram Alternate Assets Ltd, a subsidiary of Sundaram Asset Management Company Ltd, this week launched its fourth real estate-focused private credit fund, with a target to raise about Rs 1,500 crore (about $183 million), including a green shoe option of Rs 750 crore.
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