Arnya Real Estate Fund Advisors, an alternative investment management firm, in partnership with Mumbai-based Supreme Universal, has launched a private equity fund targeting the Mumbai and Pune real estate markets.

The fund aims to raise Rs 1,000 crore, comprising a base fund of Rs 500 crore and a green-shoe option of an additional Rs 500 crore. The primary focus will be on redevelopment projects, with Supreme Universal acting as the execution partner to bring operational expertise. Sharad Mittal, founder of Arnya Real Estate Fund, clarified that the fund will not invest in distressed assets or low-cost housing, maintaining a clear focus on mid to premium segments with strong market fundamentals.

This strategic fund is designed to capitalise on the growing demand for urban redevelopment in Mumbai and Pune, especially under evolving regulatory frameworks and increasing demand for well-located, upgraded housing.