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Serving as a boon to Tier-II property developers, especially those making small-sized investments in Bengaluru and Mumbai, a real estate investment fund worth Rs 250 crore has been announced. The fund, named Neev, has been floated by Manipal Education and Medical Group scion Ranjan Pai and former Infosys finance chief Mohandas Pai, along with three other investors as its co-founders. While the five partners have pooled in 35 per cent of the first fund, HNIs would contribute to the rest. The fund will be kicked off next month and will look to invest through debt deals or construction finance and finance against inventory. Plans are also being laid to start a larger fund of up to Rs 1,000 crore by next year; about 80 per cent of the fund is already in place. The size of individual investments will range between Rs 10 crore and Rs 20 crore. Where property developers are finding it difficult to borrow from banks due to a prolonged slump in the sector and stretched balance sheets, funds such as Neev have become popular. Also, NBFCs such as Piramal Realty, Altico and KKR's real estate arm have put in significant amount in builders across the cities of Bengaluru and Mumbai