Etonhurst Capital to raise ₹500 cr realty fund for Mumbai redevelopment projects

The fund, Etonhurst Redevelopment Fund 1, is registered as a Category-II alternative investment fund (AIF) with the Securities and Exchange Board of India and aims to raise a ₹500 crore corpus, with an additional ₹250 crore green-shoe option.

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Etonhurst was founded by Bamasish Paul, former managing director at Brookfield Asset Management and AIG Global Real Estate India, and Tushar Udayan Bose, former partner at CreditCapital Finance Partners. 

For the redevelopment fund, the firm has partnered with The Guardians Real Estate Advisory, which also serves as a lead sponsor. Etonhurst plans to source capital from high-net-worth individuals (HNIs) and family offices.

Mumbai’s real estate market, constrained by limited land availability, has seen increasing momentum in redevelopment projects, including aging buildings, housing societies, and slum pockets. The Etonhurst fund aims to capitalize on this trend by investing in society redevelopment projects at the early stages, where demand for capital is highest.

“We see a lot of opportunities in the redevelopment space in Mumbai, yet there is a funding gap in the market. Through this fund, we intend to invest in such projects at an early stage of development, where the need for capital is substantial,” managing partner and chief executive Paul said in an interview with Mint. 

The fund will focus on structured debt financing and expects to execute 10–12 transactions over the next two years, with an average deal size of ₹50–70 crore. Etonhurst is targeting an internal rate of return (IRR) of 20–22%.

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“We have a robust pipeline of projects and are in conversation with builders. Going forward, for our future funds, we would look at partnering with strategic partners depending on what the theme of a particular fund,” Paul said. 

Mumbai’s real estate sector has rebounded strongly post-pandemic. In 2024, the Mumbai Metropolitan Region (MMR) recorded the highest residential sales among India’s top seven cities, with 155,335 units sold, according to Anarock Property Advisors. The region also led in new launches, with 134,500 units introduced last year.

Developers from other cities, including Bengaluru’s Prestige Group and Puravankara Ltd, as well as Gurugram-based DLF Ltd, have entered Mumbai’s market through redevelopment projects. Corporate players like Raymond Realty have also undertaken multiple society redevelopment initiatives.

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The entry of funds like Etonhurst is expected to provide institutional capital for Mumbai’s redevelopment projects, further boosting activity in the city’s land-constrained market.