CHENNAI: Sundaram Alternates on Monday announced it is planning to raise Rs 1,500 to Rs 2,000 crore real estate fund by March this year.
The specialist alternative investment arm of the Sundaram Finance Group said its SA Real Estate Credit Fund V, India’s first ESG-aligned real estate credit fund, has crossed Rs 1,000 crore in capital commitments within three months of its launch in October 2025.
The fund raise remains open and is expected to conclude by March 2026, with a targeted final corpus of Rs 1,500– 2,000 crore, as per a release.
The fund has attracted commitments from a diversified investor base comprising insurance companies, family offices, corporate treasuries, and ultra-high-net-worth investors. It also includes a sponsor commitment from the Sundaram Finance Group, reinforcing alignment of interest.
Karthik Athreya, managing director, Sundaram Alternates, said “as the fundraise progresses toward its final close, our focus remains on disciplined capital deployment, capital protection, and building long-term investor relationships.” Sundaram Alternates has raised over Rs 3,800 crore across five real estate credit funds, delivering IRRs in the range of 18–19 per cent. The fund is the fifth offering in SA’s established real estate-backed credit series, which has maintained a “zero capital loss” record since inception in 2017.
Investor confidence in ESG-integrated private credit continues to rise as the sector emerges as a meaningful solution to India’s real estate financing needs. The realty sector is projected to reach $1 trillion by 2030, contribute 13 per cent to GDP, and is supported by strong indicators.