Nisus Finance and BCD Group Raise ₹450 Crore for Inaugural Real Estate Credit Fund
Nisus Finance, in collaboration with BCD Group, raises ₹450 crore for its debut real estate credit fund, targeting mid-income and affordable housing projects.
Real EstateCredit FundNisus FinanceBcd GroupAffordable HousingReal Estate PuneSep 22, 2024
The fund, managed by Nisus BCD Advisors LLP, has already invested ₹450 crore in four transactions, out of a total fund corpus of ₹700 crore. Recent investments include ₹60 crore in listed non-convertible debentures for Bengaluru's Project High Cliff and ₹105 crore in Shapoorji Pallonji Real Estate's subsidiary, Suvita Real Estate. The latter investment targeted acquiring a 12.16-acre land parcel in Pune's Manjari-Budruk area, a key growth market.
The primary objective of the fund is to invest in mid-income and affordable housing projects, as well as plotted development opportunities. RESO-1 focuses on special situation funds to unlock significant value by financing projects needing financial completion. The fund targets an internal rate of return (IRR) between 18% and 22% over a five-year horizon, with the potential to extend for an additional two years if necessary.
According to Amit Goenka, Managing Director and CEO of Nisus Finance, there is strong demand for last-mile construction finance as numerous real estate projects remain unfinished. Nisus Finance's focus on addressing the financing gap for real estate projects is vital, particularly for developments in the affordable housing segment. By providing critical last-mile financing, Nisus is playing a pivotal role in helping these projects move from the development phase to completion, ensuring that they reach the market on time and meet growing housing demand.
Frequently Asked Questions
What is the total fund corpus of RESO-1?
₹700 crore
What is the primary objective of the RESO-1 fund?
To invest in mid-income and affordable housing projects, as well as plotted development opportunities.
What is the targeted IRR for the RESO-1 fund?
Between 18% and 22% over a five-year horizon
What is the role of Nisus Finance in the real estate sector?
Providing critical last-mile financing to help projects move from the development phase to completion
Who is the Managing Director and CEO of Nisus Finance?
Amit Goenka
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