Key Takeaways
- • HiLITE Group, a Kerala-based real estate developer, has launched its maiden fund, HiLITE Ethical Fund 1, targeting $21 million (Rs 200 crore) in capital through its new investment management vertical, HiLITE Investment Management.
- • The fund is a SEBI-registered Category II Alternative Investment Fund aimed at high-net-worth individuals and institutional investors seeking long-term real estate exposure.
- • The fund is Shariah-certified by Taqwaa Advisory and Shariah Investment Solutions (TASIS) and will primarily invest in greenfield and brownfield developments.
- • Terms include a seven-year tenure, a minimum commitment of Rs 1 crore payable over 36 months, and expected distributions beginning in the fourth year.
- • Institutional partners include PwC (auditor), Mitcon Credentia (trustee), State Bank of India (banker), Nuvama (custodian), and Ajmal & Company (regulatory advisor).
Summary
HiLITE Group, a Kerala-based real estate developer, has launched a $21-million (Rs 200 crore) real estate-focused fund, marking its entry into investment management through a new vertical, HiLITE Investment Management, according to an announcement. The maiden offering, HiLITE Ethical Fund 1, is a Category II Alternative Investment Fund registered with the Securities and Exchange Board of India (SEBI). It will target high-net-worth individuals and institutional investors seeking long-term exposure to real estate.
The Shariah-certified fund, certified by Taqwaa Advisory and Shariah Investment Solutions (TASIS), will primarily invest in greenfield and brownfield developments. Each investment opportunity will undergo an initial compliance assessment by HiLITE Investment Management, followed by a review by TASIS's Shariah advisory team, the company said in its statement. The fund has a tenure of seven years and a minimum investment commitment of Rs 1 crore, payable in instalments over 36 months. It expects to begin distributions to investors from the fourth year onwards, depending on project realisations and overall performance, noting that real estate projects typically have development cycles of two to four years.
HiLITE Group CEO Ajil Muhammed said the entry into investment management is driven by a vision of bringing the group's real estate experience to a wider investment landscape. He said the firm sees an opportunity to offer high-net-worth individuals access to professionally managed, real estate-focused investment opportunities.
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. Over the past 30 years, the group has built a strong presence in Kerala's real estate market, developing projects including Focus Mall, HiLITE City and World Trade Center Kozhikode. It aims to develop 50 million square feet across Kerala by 2030.
The Shariah-certified fund, certified by Taqwaa Advisory and Shariah Investment Solutions (TASIS), will primarily invest in greenfield and brownfield developments. Each investment opportunity will undergo an initial compliance assessment by HiLITE Investment Management, followed by a review by TASIS's Shariah advisory team, the company said in its statement. The fund has a tenure of seven years and a minimum investment commitment of Rs 1 crore, payable in instalments over 36 months. It expects to begin distributions to investors from the fourth year onwards, depending on project realisations and overall performance, noting that real estate projects typically have development cycles of two to four years.
HiLITE Group CEO Ajil Muhammed said the entry into investment management is driven by a vision of bringing the group's real estate experience to a wider investment landscape. He said the firm sees an opportunity to offer high-net-worth individuals access to professionally managed, real estate-focused investment opportunities.
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. Over the past 30 years, the group has built a strong presence in Kerala's real estate market, developing projects including Focus Mall, HiLITE City and World Trade Center Kozhikode. It aims to develop 50 million square feet across Kerala by 2030.
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