HiLITE Group Announces Rs 200 Crore Shariah-Certified Fund

HiLITE Group, the Kozhikode-based real estate developer, has announced its first investment fund, HiLITE Ethical Fund 1, with a fund size of up to Rs 200 crore. The fund marks the group's move into investment management through a new arm called HiLITE Investment Management.

HiLITE Ethical Fund 1 is registered as a Category II Alternative Investment Fund and is certified as Shariah-compliant by TASIS (Taqwaa Advisory and Shariah Investment Solutions). It is meant for high-net-worth individuals and institutional investors, will invest mainly in greenfield and brownfield real estate developments, and runs for seven years, with a minimum commitment of Rs 1 crore paid in instalments over 36 months.

HiLITE Ethical Fund 1 at a glance

How HiLITE Ethical Fund 1 will pick and pay out on projects

HiLITE Group said each investment opportunity will first be assessed by HiLITE Investment Management for compliance with Shariah guidelines and then reviewed by the Shariah advisory team of TASIS. The company said distributions to investors may begin from the fourth year onwards, depending on project realisations and the fund's overall performance, since real estate projects usually take two to four years to develop.

The fund has named its service partners. PwC is the fund auditor, Mitcon Credentia is the trustee, State Bank of India is the banker, Nuvama is the custodian and Ajmal & Company is the regulatory advisor.

HiLITE Group's three decades in Kerala real estate

HiLITE Group was set up in 1996 by its chairman, P. Sulaiman, and is headquartered in Kozhikode. Over about 30 years it has developed projects including Focus Mall and HiLITE City, and it is now building World Trade Center Kozhikode. Its chief executive is Ajil Muhammed.

Ajil Muhammed on the move into fund management

"Our entry into investment management is driven by a larger vision of bringing our experience in real estate to a wider investment landscape. We see an opportunity to offer high-net-worth individuals access to professionally managed, real estate-focused investment opportunities, supported by a structured and disciplined approach. As we expand into this sector, our focus will remain on careful decision-making, responsible practices and creating long-term value,"

HiLITE Group's stated goal for Kerala by 2030

HiLITE Group said it aims to develop 50 million square feet across Kerala by 2030. The group said HiLITE Investment Management will bring its real estate experience to a wider investment landscape.

Where HiLITE Group stands after launching its first fund

HiLITE Group, a Kozhikode developer set up in 1996, now has an investment management arm alongside its real estate business. Its first fund, HiLITE Ethical Fund 1, has a fund size of up to Rs 200 crore, a seven-year tenure and a minimum commitment of Rs 1 crore. The fund is certified as Shariah-compliant by TASIS and will invest mainly in greenfield and brownfield real estate developments.

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