Mumbai-based real estate fund manager Everstone Capital has held a final close on its largest real estate fund since 2006, hauling $330 million for IndoSpace Logistics Parks II (ILP II) after less than a year of fundraising.
ILP II is the second fund out of Everstone’s joint venture with US-based industrial real estate investment management company Realterm Global. The fund is understood to have secured commitments from institutional investors mostly in the US, including endowments, foundations, sovereign wealth funds and pension funds. Approximately 75 percent of the capital came from Indospace’s existing investors.
The final closing makes ILP II Everstone’s largest real estate fund since the onset of the global financial crisis, as well as its first real estate fund raised in four years. The capital raise exceeded Everstone’s $300 million target and came in just under its $350 million hard cap. Everstone used no placement agent for the fundraise.
“We are incredibly pleased with the continued support from our first fund investors and welcome a fantastic group of additional investors into our second fund,” Realterm Global co-founder and chief executive Ken Code said in a firm statement. Everstone managing partner Rajesh Jaggi added that Indospace will be focused on developing warehouses and industrial facilities that are suitable for multinational tenants.
Everstone declined to comment on the identities of its investors, but apart from its equity haul, the fund is understood to have also secured a $100 million financing commitment from the Overseas Private Investment Corporation (OPIC) in the US, which could have been used to leverage its capital outlays. It is understood, however, that Everstone did not end up taking that capital, opting instead for onshore leverage.
ILP II had its first close on between $200 million and $250 million in June, PERE reported previously. Everstone and Realterm launched ILP II in Q4 2012, just after Everstone fully committed the capital from its previous two real estate funds, including the $240 million ILP I that closed in 2009. Fund II is now approximately 10 percent committed.
Since ILP II’s first close, the platform’s development pipeline has more than doubled from 15 million square feet across 10 parks to 32 million square feet. The developments are primarily located in the cities of Mumbai, Pune, Bangalore, Chennai, NCR, Ahmedabad, and Calcutta.