IITL Launches ₹500-Crore Real Estate AIF Fund

Industrial Investment Trust Limited (IITL) has launched an ambitious initiative in India’s real estate sector, announcing the launch of a ₹500-crore Category I Alternative Investment Fund (AIF) along with a new housing finance company. These projects aim to capitalise on the current growth trajectory of the real estate market and provide accessible financing for homebuyers and property upgraders.

The ₹500-crore AIF, geared towards both residential and commercial projects, will specifically target Tier-1 and Tier-2 cities. This fund is designed to address growing housing demands, a record surge in office leasing, and a rise in flexible workspaces and domestic tourism. By partnering with leading Grade A developers, IITL aims to develop high-quality projects that meet the increasing demand for top-tier real estate in India’s urban centres. The housing finance company will offer tailored, accessible financing solutions for homebuyers and upgraders. As India’s middle class and affluent segments expand, there is an increasing need for flexible financial products that can facilitate homeownership and property upgrades, which IITL’s new arm aims to address.

In its recent earnings report, IITL showcased a healthy financial position. As of September 2024, IITL’s investment portfolio stood at ₹405 crore, diversified across multiple sectors with a strong emphasis on real estate. The second quarter of the fiscal year 2024-25 saw IITL’s revenue rise to ₹14.47 crore, up significantly from ₹6.01 crore the previous year. Net income also saw impressive growth, reaching ₹9.36 crore, compared to ₹2.02 crore during the same period last year. For the half-year period, the company’s total revenue was reported at ₹26.14 crore, with net income at ₹16.7 crore, marking a substantial year-on-year improvement.

Chairman and Managing Director of IITL, Bipin Agarwal, emphasised the company’s strategic focus, stating, “India’s real estate sector is on a powerful growth trajectory, and we see immense potential in partnering with esteemed developers across the country.” He further highlighted that the new housing finance company will strengthen IITL’s role in aiding Indians to achieve their homeownership goals. Founded in 1933, IITL has a long-standing presence in India’s financial sector, initially providing investment advice and portfolio management with backing from institutions like Prudential and Oriental Insurance, along with prominent Indian royal families. Listed on both BSE and NSE, IITL became a Non-Banking Financial Company (NBFC) in 2000, expanding its portfolio to include investments in shares, debentures, bonds, private equity, and margin funding.

IITL’s recent foray into real estate financing and investment is part of its broader strategy to capture opportunities within India’s fast-evolving real estate landscape. With urbanisation, infrastructure growth, and housing demand on the rise, IITL’s dual initiatives aim to capture significant market share in both investment and lending. These moves position IITL as a major player in India’s real estate finance and development sector, catering to the aspirations of a growing urban population.