Key Takeaways
- • HiLITE Group is launching HiLITE Investment Management in Kozhikode, Keralam, with a proposed INR 200 crore real estate-focused Alternative Investment Fund as its first offering.
- • HiLITE Ethical Fund 1 is registered with SEBI as a Category II AIF and targets high-net-worth individuals and institutional investors seeking long-term real estate exposure.
- • The fund holds Shariah certification from Taqwaa Advisory and Shariah Investment Solutions (TASIS), which will oversee compliance, and will invest mainly in greenfield and brownfield developments.
- • The fund has a seven-year tenure and a minimum commitment of INR 1 crore, payable in instalments over 36 months, with distributions expected from the fourth year.
- • Institutional service providers include PwC (auditor), Mitcon Credentia (trustee), State Bank of India (banker), Nuvama (custodian) and Ajmal & Company (regulatory advisor).
Summary
HiLITE Group is set to enter the investment management sector with the launch of HiLITE Investment Management, a new business vertical based in Kozhikode, Keralam. According to the company, its first product, HiLITE Ethical Fund 1, is a proposed INR 200 crore real estate-focused Alternative Investment Fund registered with the Securities and Exchange Board of India as a Category II AIF. The fund is designed for high-net-worth individuals and institutional investors seeking long-term exposure to real estate.
The fund has received Shariah certification from Taqwaa Advisory and Shariah Investment Solutions (TASIS), which will oversee compliance with applicable Shariah investment guidelines. The fund will primarily invest in greenfield and brownfield developments, with an emphasis on disciplined capital management. Investment opportunities will first be assessed by HiLITE Investment Management for Shariah compliance, then reviewed by the Shariah advisory team before proceeding.
Key fund terms include a seven-year tenure and a minimum commitment of INR 1 crore, which investors may pay in instalments over 36 months. The company indicated that distributions may begin from the fourth year, reflecting the typical two-to-four-year development cycle of real estate projects. It cautioned that actual distributions and returns will depend on project realisations and overall fund performance. The fund's institutional partners include PwC as auditor, Mitcon Credentia as trustee, State Bank of India as banker, Nuvama as custodian and Ajmal & Company as regulatory advisor.
HiLITE Group chairman P. Sulaiman said the venture extends the group's three-decade presence across sectors and reflects its approach of combining investment opportunities with ethical principles. Group chief executive Ajil Muhammed said the move would extend the company's real estate experience to a wider investment market. The group has developed projects across Keralam, including Focus Mall, which the company describes as the state's first mall, HiLITE City, and World Trade Center Kozhikode, and has set a target of developing 50 million sq. ft. across Keralam by 2030.
The fund has received Shariah certification from Taqwaa Advisory and Shariah Investment Solutions (TASIS), which will oversee compliance with applicable Shariah investment guidelines. The fund will primarily invest in greenfield and brownfield developments, with an emphasis on disciplined capital management. Investment opportunities will first be assessed by HiLITE Investment Management for Shariah compliance, then reviewed by the Shariah advisory team before proceeding.
Key fund terms include a seven-year tenure and a minimum commitment of INR 1 crore, which investors may pay in instalments over 36 months. The company indicated that distributions may begin from the fourth year, reflecting the typical two-to-four-year development cycle of real estate projects. It cautioned that actual distributions and returns will depend on project realisations and overall fund performance. The fund's institutional partners include PwC as auditor, Mitcon Credentia as trustee, State Bank of India as banker, Nuvama as custodian and Ajmal & Company as regulatory advisor.
HiLITE Group chairman P. Sulaiman said the venture extends the group's three-decade presence across sectors and reflects its approach of combining investment opportunities with ethical principles. Group chief executive Ajil Muhammed said the move would extend the company's real estate experience to a wider investment market. The group has developed projects across Keralam, including Focus Mall, which the company describes as the state's first mall, HiLITE City, and World Trade Center Kozhikode, and has set a target of developing 50 million sq. ft. across Keralam by 2030.
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