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Toro Investment Managers, a distinguished financial services entity, has set out to secure funding for a Real Estate Alternative Investment Fund (AIF) amounting to Rs 1,600 crore. This is the first fund of its kind to be instituted within the GIFT City Special Economic Zone. Beyond this distinction, the fund holds significance as it exclusively targets investments within the GIFT City. The fund is said to invest across diverse sectors, including commercial enterprises, residential properties, and social infrastructure initiatives.
Jaxay Shah, the founder and chairman of Toro Investment Managers, stated that Toro is working to attract global investors to explore the diverse opportunities offered by GIFT City and the International Financial Services Centre (IFSC). The dollar-denominated fund has a seven-year tenure, including two-year extensions on two occasions. The Rs 1600 crore fund includes a green shoe option of Rs 800 crore.
The IFSC's favourable regulatory framework, competitive tax structure, and cost-effective operations are attracting global fund structures to the GIFT IFSC. Dipesh Shah, an executive director at the International Financial Services Centres Authority (IFSCA), highlights the notable expansion observed in the establishment of AIFs within the International Financial Services Centre (IFSC). This has created a comprehensive fund ecosystem that now includes AIFs, fund managers, portfolio management services (PMS), investment advisers, and fund administrators.
The fund is anticipated to attract investments from institutional investors, family offices, high-net-worth individuals (HNIs), and non-resident Indians (NRIs). This is significant in light of recent simplifications related to tax regulations affecting NRIs. In July, the Central Board of Direct Taxes (CBDT) issued a clarification stating that NRIs income derived from offshore investments channelled through an AIF established in an IFSC shall be exempt from taxation.
In conclusion, Toro Investment Managers' pursuit of a ground breaking real estate AIF in GIFT City stands to shape the future of global finance. With visionary leadership, a strategic focus on GIFT City, and a robust legal framework, this initiative marks a significant stride towards fostering international investment and financial growth.
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