Aditya Birla Sun Life Asset Management Company (ABSL AMC) and global investment firm BGO are targeting a $1 billion real estate portfolio in India over the next two to three years. The investment plan comes amid growing demand for institutional capital from property developers seeking structured financing for residential, commercial and mixed-use projects.
The real estate credit platform, which operates through alternative investment funds and portfolio management services, has invested more than $200 million in India since 2022. Its investments span 19 projects across six cities, with a focus on developments that have the necessary approvals and are backed by established developers with a proven track record.
The platform plans to expand its investments as India’s real estate financing market evolves. Regulatory changes, consolidation within the sector and stronger balance sheets among leading developers are contributing to increased interest in institutional funding. Developers are increasingly seeking financing structures suited to individual project stages, risk profiles and execution requirements.
A Balasubramanian, managing director and chief executive officer of Aditya Birla Sun Life AMC, said the changing real estate market is creating a larger role for institutional credit. He noted that the investment strategy focuses on projects with strong fundamentals, experienced developers and well-structured financing arrangements rather than simply increasing capital deployment.
The platform aims to maintain a disciplined investment approach, with emphasis on managing downside risks and preserving capital across different market cycles. Akshat Pandya, head of real estate at ABSL AMC, leads the platform.
Bharat Khanna, head of India at BGO, said the platform’s experience across projects and cities has highlighted the importance of assessing both the underlying property assets and the conditions affecting project execution. He added that the firm sees opportunities to expand selectively as India’s real estate credit market develops.
Focus on Risk Management and Project Evaluation
The investment strategy includes a detailed assessment of projects before capital is committed. The platform’s underwriting process covers technical, legal, financial and market-related parameters to evaluate project viability and potential risks.
Its investments carry security cover of 1.5 to 2 times, providing a layer of protection against potential losses. The portfolio is also monitored throughout the investment lifecycle to track project progress, financial performance and other factors that could affect repayment and investment outcomes.
The approach is designed to ensure that capital is deployed selectively, with due consideration given to the financial strength of developers, the status of project approvals and the broader market environment.
The partnership combines ABSL AMC’s capabilities in local deal origination, underwriting, portfolio management and real estate expertise with BGO’s international experience in real estate investment and portfolio advisory. This combination is expected to support the platform’s expansion while maintaining its focus on risk assessment and investment discipline.
Institutional Credit Gains Importance in Real Estate
The proposed $1 billion portfolio target reflects the growing role of institutional investors in India’s property sector. As developers manage financing requirements across different stages of construction and sales, structured credit can provide an alternative to conventional funding sources.
Such financing can be particularly relevant for developers seeking capital for projects with established approvals and defined execution plans. For institutional investors, the strategy offers opportunities to participate in the real estate market through investments supported by project-level assessments and security arrangements.
However, portfolio expansion will depend on identifying suitable projects, evaluating market conditions and managing the risks associated with property development. The platform’s emphasis on selective deployment and ongoing monitoring is intended to support its long-term investment objectives.
With more than $200 million already invested across 19 projects in six cities, ABSL AMC and BGO are looking to increase their presence in India’s real estate credit market over the next two to three years. Their planned expansion highlights the growing importance of institutional financing in supporting property development and meeting the sector’s evolving capital requirements.
