Solomartel, one of the world’s largest online real estate investment funds has completed its first-ever fund in India last week.
The online investment fund is known for providing real estate investment opportunities to individuals and companies around the globe.
Solomartel funds are considered by many financial advisors to be both very profitable and safe investments at the same time, which is a statement the company does not shy away from.
Until very recently, the company Solomartel has been proposing most of its real estate funds on the American continent, in southern and eastern Europe, south east Asia and certain middle eastern countries.
The company has been a major player in real estate on the American continent with one of their most profitable real estate funds having been recently completed in the southern United states.
However, this newly completed fund could be one of the most profitable real estate investment deals in India which has been a very difficult real estate market to enter for foreign investors.
This fund spreads across the country, consisting mostly of residential real estate investments. The properties are to be operated as housing infrastructure for long-term and short-term use.
Solomartel’s strategy consisted in purchasing or constructing residential real estate infrastructure in major Indian cities below market value, the main criteria for the cities of choice being that they must have a high economic growth but an already developed and diversified economy where housing is in high demand. Many buildings from the investment portfolio are new constructions.
Most of the fund’s properties are located in Chennai, Bangaluru and Pune where certain commercial real estate investments were also made alongside the residential ones, mostly in the form of office buildings and commercial centers.
The fund also included a significant number of properties in Surat, projected to be the world’s fastest growing city in the 2019-35 period, according to a global economic research report.
Other residential real estate investments were made to a smaller extent in the city of Jaipur, in northern India. Almost all these cities were part of the world’s top 50 fastest growing cities in terms of economic growth.
The investment company reported that an important emphasis was placed on building properties in a cost effective yet very solid manner to effectively withstand the harshest treatments during the fund’s operation in the years to come, whilst keeping only rudimentary equipment and avoiding extra bells and whistles.
The fund turned out to be much more desirable than initially expected, and contrary to public expectations, the raising amount was hit in less than 2 months, almost 3 times faster than anticipated and the fund ended up oversubscribed.
The fund counts many famous investors among its customers such as Indian real estate moguls Kushal Pal Singh, Chandru Raheja and Jitendra Virwani but also the Bank of Baroda, one of India’s largest banks and the sovereign wealth fund of Saudi Arabia.
The development of affordable real estate in India is currently considered to be a profitable business in terms of return on investment but it is even more so considering the ongoing shortage of housing infrastructure in the Indian republic and the multiple incentives put in place by the government to tackle the issue.
Solomartel commented that the CEO and leader of the corporation see many opportunities in India and that the company plans to open many more funds in India and is considering expanding to other Indian cities but also to neighbouring Sri Lanka, with an emphasis on adapting to each local real estate market.