Sundaram Alternates Closes Fifth Real Estate Green Credit Fund at ₹2,500 Crore, Surpassing Target
Mumbai, May 22, 2026: Sundaram Alternates, the alternative investment arm of Sundaram Finance Group, has announced the final close of its SA Real Estate Credit Fund V at ₹2,500 crore. India’s first ESG-aligned real estate credit fund achieved full subscription within seven months of its October 2025 launch, significantly outperforming its initial target corpus of ₹1,500 crore. Driven by strong demand from institutional investors, insurance companies, family offices, and ultra-high-net-worth individuals, the fund has already committed over 90% of its raised capital, Sundaram Alternates said in a statement.
The fund employs a performing credit strategy centered on senior-secured, amortising, cash-generating deals from brownfield residential projects, prioritizing capital protection through conservative loan-to-value structures. Notably, it stands as the first domestic real estate credit fund with a formal “green built” framework, embedding climate protection and ESG criteria directly into its underwriting and portfolio construction to enhance credit assessment and resilience.
With this latest closing, Sundaram Alternates has raised over ₹5,500 crore across its real estate credit platform. Since its inception in 2017, the platform has maintained a zero capital loss record and delivered internal rates of return (IRRs) between 18% and 19%, successfully navigating major market disruptions including the pandemic and inflationary cycles. The achievement comes amid a robust outlook for India’s real estate sector, which is projected to reach $1 trillion by 2030 and contribute 13% to the nation’s GDP.
Commenting on the final close, Karthik Athreya, Managing Director, Sundaram Alternates, said: “Reaching a final close at ₹2,500 crores in less than seven months is a strong validation of the platform we have built over nearly a decade. Investors have consistently backed our discipline — across underwriting and risk management — with a high degree of consistency. This outcome reflects that trust. We are grateful for the confidence our investors continue to place in us. With Fund V now close to being fully deployed this quarter, our focus turns to delivering the outcomes we have committed to, while continuing to build our alternatives platform for the next phase of growth, which is already well underway with a host of innovative and risk-adjusted products being launched and under development.”
