HiLITE Group, a Kerala-based real estate developer, has launched a $21-million (Rs 200 crore) real estate-focused fund, marking its entry into investment management through a new vertical, HiLITE Investment Management, according to an announcement.
The maiden offering, HiLITE Ethical Fund 1, is a Category II Alternative Investment Fund (AIF) registered with the Securities and Exchange Board of India (SEBI). It will target high-net-worth individuals and institutional investors seeking long-term exposure to real estate.
The Shariah-certified fund, certified by Taqwaa Advisory and Shariah Investment Solutions (TASIS), will primarily invest in greenfield and brownfield developments. It has a tenure of seven years and a minimum investment commitment of Rs 1 crore, payable in instalments over 36 months, the company said in a statement.
“Our entry into investment management is driven by a larger vision of bringing our experience in real estate to a wider investment landscape. We see an opportunity to offer high-net-worth individuals access to professionally managed, real estate-focused investment opportunities, supported by a structured and disciplined approach. As we expand into this sector, our focus will remain on careful decision-making, responsible practices and creating long-term value,” said HiLITE Group CEO Ajil Muhammed.
The fund expects to begin distributions to investors from the fourth year onwards, depending on project realisations and overall performance. Real estate projects typically have development cycles of two to four years.
Each investment opportunity will undergo an initial assessment by HiLITE Investment Management for compliance with Shariah guidelines, followed by a review by TASIS’s Shariah advisory team, the statement said.
The fund’s institutional partners include PwC as auditor, Mitcon Credentia as trustee, State Bank of India as banker, Nuvama as custodian, and Ajmal & Company as regulatory advisor.
Over the past 30 years, the group has gained a strong foothold in Kerala’s real estate market, and has developed projects including Focus Mall, HiLITE City and World Trade Center Kozhikode. It aims to develop 50 million square feet across Kerala by 2030.
