Certus Capital Invests INR 150 Crore in Mid-Market Housing Projects in MMR
Certus Capital invests INR 150 crore in two MMR housing projects, targeting INR 750 crore in revenue and expanding its national real estate portfolio.
Real EstateMmrHousingInvestmentCertus CapitalReal Estate NewsNov 08, 2024
The projects, covering a total development area of 385,000 square feet, have the potential to generate over INR 750 crore in revenue. This investment aligns with Certus Capital's broader strategy to inject INR 1,000 crore into secured credit within the real estate sector by the end of this financial year. According to Ashish Khandelia, the founder of Certus Capital and Earnnest.me, the firm aims to back experienced developers in tier-1 cities, contributing to a growing high-yield bond market that initially focuses on real estate.
In the past three years, Certus Capital has successfully conducted nine deals through its digital secured debt platform, Earnnest.me. Notably, the firm has fully exited two of these deals, providing investors with returns exceeding 15%, ahead of their scheduled maturities. As of January 2024, the firm has invested around INR 450 crore and expects to close the year with total investments reaching INR 600 crore, a sixfold increase compared to the previous year.
The company's investment strategy is not limited to Mumbai alone. Certus Capital has financed various projects across cities like Pune and Chennai and is currently exploring opportunities in Bengaluru and Hyderabad. This approach allows the firm to maintain a diverse investment portfolio while tapping into different real estate markets. The firm's platform has also seen a strong interest from investors, with a 77% repeat investment rate.
Recently, Certus Capital expanded its offerings to institutional investors, securing a partnership with a notable firm that manages assets exceeding INR 1 lakh crore. This partnership includes a INR 50 crore investment in one of Certus's recent deals, demonstrating confidence in the firm's ability to deliver solid returns in the real estate sector.
The growth of mid-market housing is particularly significant given the rising demand for affordable housing in urban areas, driven by increasing population and economic development. As budgets for housing expand, developers are keen to meet this need, and investments from firms like Certus Capital play an essential role in this process.
Overall, Certus Capital's latest investments reflect a strategic focus on areas with high growth potential in the real estate market while also catering to a diverse group of investors. By continuing to foster partnerships with established developers, the firm is positioning itself to capitalize on the expanding real estate landscape in India.
Frequently Asked Questions
What is the total investment Certus Capital is making in the MMR housing projects?
Certus Capital is investing INR 150 crore in two mid-market housing projects in the Mumbai Metropolitan Region (MMR).
What is the potential revenue from these housing projects?
The potential revenue from these projects is over INR 750 crore.
Which developers are Certus Capital supporting with this investment?
Certus Capital is supporting developers JSB Group and Dynamix Group with this investment.
What is Certus Capital's broader investment strategy?
Certus Capital's broader strategy is to inject INR 1,000 crore into secured credit within the real estate sector by the end of this financial year, backing experienced developers in tier-1 cities.
Why is the growth of mid-market housing significant?
The growth of mid-market housing is significant due to the rising demand for affordable housing in urban areas, driven by increasing population and economic development.
Related News Articles
PBB's Q2 2024 Profits Plummet 74% Amid US Real Estate Crisis
PBB's profits fell sharply due to its exposure to the struggling US commercial real estate market, hit by rising interest rates, falling property values, and high office vacancies.
MahaRERA Conciliation Forums Resolve 1,749 Homebuyer-Developer Disputes
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has successfully resolved 1,749 disputes between homebuyers and real estate developers through its conciliation forums. These forums, established in 2018, have significantly improved the resoluti
Nithin Kamath Expresses Concerns Over Pollution and Luxury Real Estate
Zerodha CEO Nithin Kamath discusses the rising pollution levels in India and their potential impact on the luxury real estate market.
Blackstone-Panchshil Partnership to Construct India's Largest 500 MW Hyperscale Data Hub
Blackstone and Panchshil have announced a major partnership to build India's largest 500 MW hyperscale data center hub in Pune, Maharashtra. This ambitious project marks a significant step towards boosting India's digital infrastructure and attracting glo
Adani Group's Mega Projects in Mumbai Face Environmental Scrutiny
Adani Group is pushing forward with two major projects in Mumbai, one of the world's most expensive real estate markets, amid environmental concerns and regulatory hurdles.
Sohail Khan Earns Rs 10 Crore in Rent from High-Profile Bandra Property
Sohail Khan, a prominent figure in Mumbai's real estate scene, has secured a lucrative five-year lease deal for his property in Bandra. The property, located in one of Mumbai's most upscale neighborhoods, has been rented out to The Irish House Food and Beverages Pvt Ltd. for a staggering Rs 10 crore in rent.