Dalmia Nisus Exits Bengaluru Real Estate Project with Impressive 19% IRR
Dalmia Nisus Finance Investment Managers exits its investment from the Real Estate Credit Opportunities Fund - I (RECOF-I) with a significant 19% IRR, marking a successful venture in the Indian real estate market.
Real EstateInvestmentDalmia NisusBengaluruIrrReal Estate NewsOct 30, 2024
In July 2022, RECOF-I invested INR 40 crore in the Chirping Ridge project, a development located near Jain Heights in Bangalore. This investment has been exited within two years, achieving an impressive internal rate of return (IRR) of approximately 19%. This outcome underscores the effectiveness of Dalmia Nisus's investment strategy, which targets 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 crucial role in accelerating the development and sales of this prime project, which has seen substantial progress over the past couple of years. Murali, Managing Director of Shriram Properties, noted that the team at Dalmia Nisus has a deep understanding of the project and worked closely with their team to ensure efficient completion.
The success of this investment is also attributed to the streamlined processes and personalized solutions provided by Dalmia Nisus. Kishore Jain, Managing Director of Jain Heights, emphasized the importance of their responsive team in securing funds, which ultimately facilitated the project's timely exit. This collaboration has not only benefited the stakeholders involved but also contributed to the overall growth of the real estate sector in Bangalore.
Dalmia Nisus operates with a INR 500 crore fund that primarily invests in structured credit and mezzanine financing across India's residential market. The firm's strategy focuses on partnering with strong developers like Shriram Properties to ensure successful project completions. Amit Goenka, CEO of Nisus Finance, highlighted the positive impact of regulatory frameworks like the Real Estate Regulation Act (RERA) in boosting buyer confidence and accelerating project sales. He emphasized that their investments are yielding dividends for investors, projecting 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 successful track record 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 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, 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. As the sector continues to mature, such successful exits will likely 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 an investment fund managed by Dalmia Nisus Finance Investment Managers LLP, which focuses on structured credit and mezzanine financing in the Indian residential real estate market.
How much did RECOF-I invest in the Chirping Ridge project?
RECOF-I invested INR 40 crore in the Chirping Ridge project in July 2022.
What is the internal rate of return (IRR) achieved by Dalmia Nisus from the Chirping Ridge project?
Dalmia Nisus achieved an impressive IRR of approximately 19% from the Chirping Ridge project.
What is the total development potential of the Chirping Ridge project?
The Chirping Ridge project has a total development potential of 5.49 lakh square feet.
What is the focus of Dalmia Nisus's investment strategy?
Dalmia Nisus's investment strategy focuses on mid- to late-stage real estate projects, partnering with strong developers to ensure successful project completions and high returns for investors.
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