Alternative investment fund Mt K Kapital on Wednesday said it has raised over Rs 500 crore to deploy in real estate projects in the Mumbai Metropolitan Region (MMR). In a statement, Mt K Kapital said it has raised Rs 500 crore for its maiden fund (Mt. K Resi Development Fund Category II SEBI registered Alternative Investment Fund) from investors like SBI, ICICI Bank, Famy Care and other HNIs.

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Over Rs 300 crore has already been committed towards five projects in the Mumbai region by Keystone Realtors (Rustomjee Group).

The fund is now exercising its green shoe option and is targeting to do a final close shortly.

Favourable macroeconomic conditions are likely to strengthen the real estate market and potentially drive expected IRRs (internal rate of returns) beyond 25 per cent, the company said.

Mt K Kapital's core strategy targets quick turnaround residential projects with low equity investments and gives investors a share of project profits from redevelopment assets across Mumbai.

The AIF plans to invest in 10-12 projects across the MMR, focusing on redevelopment with the Rustomjee Group.

Boman Irani, Chairman & Managing Director of Rustomjee Group, said, "The Mt K platform is built on the principles of transparency and alignment of interest between the investor and the developers. We believe that our structure will offer value to investors looking to capitalise on the growth of real estate as an asset class".

Binitha Dalal, founder and Managing Partner of Mt K Kapital, said, "With a distinct market advantage, we are committed to channelling the right capital into the real estate sector and remain bullish on investment opportunities in the MMR".

Mt K Kapital is a real estate-focused fund management company with a Sebi-approved Category II Alternative Investment Fund license.