Bakeri Group and Lumos Alternate launch ₹500-crore real estate fund for mid-market housing

Real estate developer Bakeri Group and investment management company Lumos Alternate have joined hands to launch a ₹500-crore real estate investment platform named Sakar Realty Fund - I. The SEBI-approved platform targets mid-market residential projects in major Indian cities such as Bengaluru, Mumbai, Ahmedabad, and Pune, with an investment horizon of 3-4 years per project.

The platform is expected to attract a diverse range of investors, including high-net-worth individuals (HNIs), family offices, and institutional investors, the companies said in a statement.

The platform has received final approval from the capital market regulator SEBI and aims to provide superior returns to its investors by leveraging the execution capabilities of the developer that has so far delivered over 42 million sq ft over the last more than six decades.

Platform deals are quite common among institutional investors, and in recent years, more than ₹20,000 crore has been committed by institutions to some of the country’s reputed developers.

However, retail investors and family offices generally don’t have direct access to such deals. Sakar Realty Fund - I aims to facilitate and expand access to institutional-grade investments by providing a regulated investment vehicle that allows investors to participate in high-quality real estate projects.

Sakar Realty Fund, provides investors the opportunity to partner with one of the most trusted and experienced developers at an early stage and on pre-defined terms. The platform will invest in mid-market residential projects in Bangalore, Mumbai, Ahmedabad, and Pune, with an investment horizon of 3-4 years per project, said Anuranjan Mohnot, Managing Director and CEO of Lumos Equity Advisors Private Limited.

“A pre-structured deal with a credible developer creates a win-win situation for both investors and developers. While the developer gains confidence in the availability of equity on call, investors benefit from a well-defined corporate governance framework and return structure with their preferred developer. Additional comfort is provided by an independent asset management company and investment committee, which ensures rigorous monitoring and timely enforceability of contracts,” he said.

Founded in 1959, Bakeri Group is a Ahmedabad-based real estate developer with over four decades of experience in creating landmark residential and commercial projects. The group has delivered over 150 real estate projects, encompassing a built-up area of more than 42 million square feet of premium real estate across India.

Lumos is an investment management firm specializing in alternative investments. The founder of Lumos Alternate, Anuranjan Mohnot, has been instrumental in launching multiple real estate funds, including the first real estate fund of Motilal Oswal and Lalbhai Group’s (Arvind Limited) real estate fund, Amplus Realty Fund.