Dalmia Nisus Exits Bengaluru Real Estate Project with 19% IRR
Dalmia Nisus Finance Investment Managers LLP has successfully exited its investment from the Real Estate Credit Opportunities Fund - I (RECOF-I), achieving an impressive 19% internal rate of return (IRR) from the Chirping Ridge project in Bengaluru.
Dalmia NisusReal EstateInvestmentIrrRecofiReal EstateOct 30, 2024
In July 2022, RECOF-I invested INR 40 crore in the Chirping Ridge project, a planned development by Shriram Properties located near Jain Heights in Bengaluru. Within just two years, the fund has achieved an impressive internal rate of return (IRR) of approximately 19%. This successful exit is a testament to Dalmia Nisus's investment strategy, which focuses on mid- to late-stage real estate projects.
The Chirping Ridge project spans 21 acres in Malur Taluk, Kolar district, Karnataka, with a total development potential of 5.49 lakh square feet. The investment from Dalmia Nisus played a pivotal role in accelerating the development and sales of this prime project. Murali, Managing Director of Shriram Properties, acknowledged the strong collaboration between Dalmia Nisus and Shriram Properties, noting that Nisus's deep understanding of the project and efficient processes contributed significantly to its success.
The success of this investment can also be attributed to the streamlined processes and personalized solutions provided by Dalmia Nisus. Kishore Jain, Managing Director of Jain Heights, highlighted the importance of Dalmia Nisus's responsive team in securing the necessary funds, which ultimately facilitated the project's timely exit. This collaboration has not only benefited the stakeholders involved but has also contributed to the overall growth of the real estate sector in Bengaluru.
Dalmia Nisus operates with a fund size of INR 500 crore, primarily investing in structured credit and mezzanine financing across India's residential market. The firm's strategy involves partnering with strong developers like Shriram Properties to ensure successful project completions. Amit Goenka, CEO of Nisus Finance, emphasized the positive impact of regulatory frameworks such as RERA (Real Estate Regulation Act) in boosting buyer confidence and accelerating project sales. He projected a 19% net IRR with all investments successfully exited within four years.
The RECOF-I fund has largely exited its portfolio investments, with only one remaining investment expected to be exited in the next three months. This track record of success demonstrates Dalmia Nisus's commitment to delivering high returns to its investors while maintaining a focus on compliance and project completion.
As the real estate landscape in India continues to evolve, funds like RECOF-I and other AIFs (Alternative Investment Funds) managed by the Nisus Finance Group are poised to unlock significant value through structured capital. With a total corpus of INR 1,500 crore for their Real Estate Special Opportunities Fund - I (RESO-I), the group aims to capitalize on high-yield opportunities within the market, further reinforcing their position as a key player in the Indian real estate investment sector.
In summary, the exit from Shriram Properties' Chirping Ridge project not only reflects Dalmia Nisus's effective investment strategy but also signals a positive trend in the Indian real estate market. Driven by strong partnerships and regulatory support, such successful exits are likely to encourage more investments and foster growth in the coming years.
Frequently Asked Questions
What is the Real Estate Credit Opportunities Fund - I (RECOF-I)?
RECOF-I is a fund managed by Dalmia Nisus Finance Investment Managers LLP that invests in mid- to late-stage real estate projects in India, primarily focusing on structured credit and mezzanine financing.
What is the Chirping Ridge project?
Chirping Ridge is a 21-acre development project by Shriram Properties located in Malur Taluk, Kolar district, Karnataka, with a total development potential of 5.49 lakh square feet.
What is the internal rate of return (IRR) achieved by Dalmia Nisus from the Chirping Ridge project?
Dalmia Nisus achieved an impressive internal rate of return (IRR) of approximately 19% from the Chirping Ridge project within two years of investment.
What is the role of Dalmia Nisus in the real estate sector?
Dalmia Nisus plays a crucial role in the real estate sector by providing structured credit and mezzanine financing, primarily focusing on mid- to late-stage projects and partnering with strong developers to ensure successful project completions.
What is the impact of regulatory frameworks like RERA on the real estate market in India?
Regulatory frameworks like RERA (Real Estate Regulation Act) have significantly boosted buyer confidence and accelerated project sales, contributing to a more transparent and trustworthy real estate market in India.
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