Indiareit Funds has decided to up its second real estate fund with a corpus of Rs 500 crore and expects to raise the targeted amount from investors by the end of this year. The group had earlier floated Indiareit Fund of Rs 2,025 crore at current exchange rates real estate fund in 2006.

The Pirimal Group, which promoted the fund, has presence in sectors like real estate, glass manufacturing, healthcare and diagnostics. The group is setting up a new domestic real estate fund and is in process of raising an overall corpus of around Rs 500 crore for it. This fund would be invested in projects located in areas like Mumbai and New Delhi and it will be restricted only to the residential segment, CEO, Ramesh Jogani said.

Sources said that Rs 500 crore would be raised from high net-worth individual (HNIs) and institutional investors. The fund would be raised only from the Indian citizen. Some real estate projects have been identified where the money could be invested and the new fund would look at a 20% return on investment on a per annum basis. Indiareit’s first real estate fund has invested Rs 1,500 in residential projects in Bangalore, Chennai and in Alibaug area of Mumbai. The new fund is said to be invested in Samira Habitats, a Mumbai- based reality firm, which develops residential projects in the area.