ArthVeda STAR invites CARE to rate its investments.
The first real estate fund to get its investments rated. Arthveda STAR, a middle income housing fund launched by Arthveda Fund Management Pvt. Ltd. (ArthVeda) has signed a Memorandum of Understanding (MOU) with CARE Ratings to rate some of the projects that the ArthVeda Fund Management invests in the Tier II/III cities across India.
“ArthVeda decided to go in for this rating exercise as it is confident about the investments of its fund. We want to tell our investors that their investments are in safe hands and to reinforce this fact we decided to rope in a neutral agency to rate some of our investee projects. This Rating is not meant as pre-transaction advice to the AMC. It would provide additional transparency to the Fund. We believe that this credible, objective, and independent rating will increase investor confidence in funds that we plan to launch,” said Mr. Bikram Sen, CEO of ArthVeda also stating that “ArthVeda is extremely pleased with this outcome and looking forward to a meaningful association with CARE.”
Further, elaborating on the reasons of this partnership, Mr. Sen said that, “this will also be beneficial for our development partners as they will be able to streamline their projects more competently and consequently eliminate maximum possible risks. On the other hand our fund managers will also be able to monitor our investments efficiently thereby increasing profits for our investors.
CARE Ratings is absolutely delighted to partner with ArthVeda.. “We are happy to see this kind of drive on part of ArthVeda to bring in transparency in fund investment and management process. We will work closely with ArthVeda fund managers in this exercise,’’ says Mr. Rajesh Mokashi DMD of CARE Ratings.
As part of the MOU, CARE would also provide research reports on some of the cities that its fund would invest in. The reports will analyze the fundamentals underlining the economies of these cities and help ArthVeda fund managers to take informed decisions.
About CARE Ratings
CARE Ratings incorporated in April 1993 and over nearly two decades; it has established itself as the second-largest credit rating agency in India in terms of rating income for the year ended March 31, 2011. Since incorporation CARE has rated Rs. 31,190 billion of debt as on March 31, 2011. CARE Ratings is proud of its place in the Indian capital market CARE’s research team provides customized research solutions in the areas of market sizing, demand estimation, demand-supply gap analysis, cost-benefit analysis, cost indexation, product segmentation and business analysis
About ArthVeda Fund Management
ArthVeda was established in 2005 and was earlier known as DHFL Venture Capital India Pvt. Ltd. (DHFLVC). ArthVeda is a subsidiary of Dewan Housing Finance Co. Ltd. (DHFL)–the third largest home mortgage finance company in India. DHFL is listed on BSE & NSE and has been rated CARE AA+, BWR FAAA & CRISIL P1 indicating high standards of business management. The objective of ArthVeda is to float funds that offer ample opportunities for extracting alpha, i.e. high risk-adjusted returns. ArthVeda’s first fund, “DREAM FUND I”, focused on commercial and residential real estate and has so far made 6 exits out of 13 investments with IRR ranging between 20% and 45%. Arthveda’s second real estate fund, ArthVeda STAR Fund is an INR 200 Crore fund with a greenshoe option of INR 100 Crore, which invests in greenfield residential projects. The investment will spread across 30-35 projects in Tier II/III cities across India with a ticket size between INR 5 Crore and INR 20 Crore.
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