Arnya, Casagrand Launch 750 Crore South India Fund

Arnya RealEstates and Casagrand have launched a ₹750-crore Category II AIF targeting residential projects in Chennai, Bengaluru and Hyderabad. The fund will invest ₹75-200 crore across 8-10 projects through a preferred equity structure.

Real estate investment manager Arnya RealEstates Fund Advisors and developer Casagrand Premier Builder have partnered to launch a ₹750-crore Category II Alternative Investment Fund (AIF) focused on residential projects across South India. The fund, Arnya Real Estate Fund III - Preferred Capital, will target opportunities in Chennai, Bengaluru and Hyderabad. 

The fund will invest between ₹75 crore and ₹200 crore across approximately eight to 10 projects. The investments will be structured through preferred equity, providing institutional and sophisticated investors exposure to real estate development margins while giving selected projects access to structured capital. Casagrand will undertake the end-to-end execution of the projects covered by the platform.

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The fund is designed to focus primarily on residential developments across the mid-income to luxury segments. Its six-year investment horizon is expected to support project-level investments in established southern markets, where demand for organised residential development remains strong.

Casagrand has also committed a minimum of ₹75 crore or 15% of the fund corpus, whichever is higher, aligning the developer’s interests with those of fund investors. The fund will operate with an investor-focused cash-flow structure under which investors receive priority in the distribution of capital and returns before residual proceeds accrue to the developer.

The partnership comes as developers increasingly seek institutional equity to support expansion, particularly as residential projects require capital at multiple stages of their development cycle. The growing role of alternative investment funds is also providing developers with financing options beyond traditional bank lending and private debt.

Founded in 2023, Arnya said the new vehicle is its third fund and that it manages approximately ₹3,000 crore across multiple real estate strategies. Earlier this year, the firm announced the first close of a residential equity fund at more than ₹1,030 crore.

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Casagrand, which has more than two decades of operating experience, has a portfolio exceeding 88 million sq ft across more than 180 projects. As of June 30, 2026, the developer had 103 completed projects, 57 ongoing projects and 21 forthcoming projects, according to the company.

The latest platform reflects the increasing institutionalisation of India’s residential real estate market. By combining Arnya’s investment management capabilities with Casagrand’s development pipeline, the partnership aims to channel structured capital into residential projects across three of South India’s major urban markets.