The IL&FS Investment Managers (IIML) announced that in its second real estate fund, it has mobilised $895 million (nearly Rs 4,500 crore). This is more than the initial mobilisation target of $750 million and far ahead of the $525 million it got in its first real estate fund. Its first fund was closed in April 2006, during the middle of the five-year long bull rally which had started in 2003.

Archana Hingorani, CEO & ED of the fund house said, "Each of the investors who had invested in its first fund, also invested in the second fund. "

IL&FS India Realty Fund-II (IIRF2) was open only to investors from outside India. Except IL&FS, which is the sponsor for the fund, all investors were from outside of India. ''The investors to this fund are a well-diversified group, and include state pension funds, foundations, university endowments and a number of family-owned investment vehicles from US, Germany, Japan and the Middle East." Hingorani added, "The single largest investment in the fund was $200 million.''

The fund is planning to invest mainly in large residential projects with some investments also going into projects for high-end office buildings in Tier-I and II cities. Each investment would be between $25 million and $75 million. IIML also intends to partner with some of the leading real estate developers as well as upcoming developers in Fund II. In the first fund, among others, it had partnered with developers like Unitech and Dynamix Balwas and it is looking to further these relationships.

During the past 14 years, IIML has raised and managed nine funds. It has invested in more than 90 investments and manages and/or advises investments of over $2 billion across several sectors.