Arnya launches ₹750 crore real estate fund with Casagrand

Arnya Real Estates Fund Advisors has launched a ₹750 crore real estate fund with Casagrand Premier Builder to back residential projects in Chennai, Bengaluru and Hyderabad.

The vehicle, Arnya Real Estate Fund III - Preferred Capital, is structured as a Category II Alternative Investment Fund. It will invest between ₹75 crore and ₹200 crore across about eight to 10 projects.

This is Arnya's third fund launch since the firm was founded in 2023. The investment manager now oversees about ₹3,000 crore across several real estate strategies.

Casagrand brings a long track record in southern India's housing market to the partnership, with more than 180 delivered projects and a portfolio of over 88 million sq ft.

The fund is focused on residential development opportunities in three of southern India's largest urban markets. These cities have continued to attract investor interest as housing demand has remained resilient and larger developers have expanded their pipelines.

The structure is designed to give investors priority in the cash flow waterfall before residual distributions go to the developer. Arnya is targeting family offices, ultra-high-net-worth individuals, institutions and other sophisticated investors.

The partnership also formalises a relationship that spans more than 15 years. Arnya Founder and Chief Executive Officer Sharad Mittal said he has worked with Casagrand on more than 20 development projects over that period.

Southern focus

The launch adds to a broader push by investment firms to channel more organised capital into India's residential property market. Developers in major southern cities have increasingly turned to structured funding as project sizes grow and financing needs become more complex.

Chennai, Bengaluru and Hyderabad remain among the country's more active housing markets. Demand in those cities has been supported by urban expansion, transport and civic infrastructure work, and a shift by buyers towards established brands.

For Arnya, the latest fund extends a strategy spanning debt, equity, preferred capital and core assets. Earlier this year, the firm announced the first close of another residential equity fund at more than ₹1,030 crore.

The platform has expanded quickly in less than two years, with a team of 25 professionals and offices in five major Indian cities.

Casagrand, meanwhile, has sought to deepen ties with institutional investors as part of its development strategy. Its large presence in southern India makes the tie-up geographically aligned for both parties.

"We see institutional capital playing an increasingly important role in the long-term growth of residential real estate. Our approach is to build enduring partnerships with institutional capital providers who share our focus on disciplined execution, transparency and aligned objectives. Casagrand's partnership with Arnya reflects this approach. We believe this will create a scalable, long-term platform to support high-quality real estate developments across Southern India," said Casagrand Founder, Chairman and Managing Director Arun Mn, commenting on the funding environment. 

Mittal said the firm sees stronger underlying conditions in the sector and rising investor demand for structured products.

"India's residential real estate sector has entered a structurally stronger phase, driven by regulatory reforms, increasing formalisation and sustained demand for organised developers. At the same time, institutional investors are looking for investment strategies that offer an improved balance between risk and return. We are focused on building structured investment products that seek to create a balance between risk and return, while aligning the interests of both investors and development partners. Our long-standing relationship with Casagrand provides a strong foundation to take this partnership forward and explore opportunities to build multiple platforms and investment strategies over the long term. This fund is an important step in that direction, bringing together our institutional investment approach and Casagrand's strong development capabilities."