The fund, Arnya Real Estate Fund III – Preferred Capital, will make investments of ₹75 crore to ₹200 crore across around eight to 10 projects. It will use a preferred equity structure, giving investors a priority claim on capital and returns ahead of residual distributions to the developer.
The fund is targeting opportunities in India’s residential real estate market, particularly in the three southern cities. Arnya said the strategy will focus on providing development capital to projects while giving institutional and sophisticated investors exposure to real estate development.
The fund is registered with the Securities and Exchange Board of India (SEBI) as a Category II AIF. Its cash-flow structure provides for capital and returns to be distributed to investors before residual distributions are made to the developer.
The launch comes as residential real estate activity remains strong in major southern markets, including Chennai, Bengaluru and Hyderabad. Developers have increasingly turned to institutional capital to fund project expansion, alongside traditional sources such as bank and non-bank financing.
Arnya, which was founded in 2023, said it currently manages around ₹3,000 crore across multiple real estate strategies. Earlier this year, the fund manager announced the first close of a residential equity fund at more than ₹1,030 crore.
The latest fund marks Arnya’s third fund and expands its strategy into preferred capital. The firm said it has worked with Casagrand on more than 20 development projects over a period of 15 years.Casagrand has a presence across Chennai, Bengaluru, Hyderabad and other markets. As of June 2025, the developer had 57 ongoing projects covering 44.10 million square feet of saleable area, according to company disclosures.
