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
Related News Articles
IT Raids on RAMA Group: Bastar Chamber President Shyam Somani Under Scrutiny
TheIncome Tax (IT) department has launched raids on the RAMA Group, a prominent real estate developer in Chhattisgarh. The operation includes the offices of Shyam Somani, the President of the Bastar Chamber of Commerce. Despite the ongoing investigation,
Union Budget 2024-25: A Boost for Real Estate Development in India
This financial support is expected to catalyze significant real estate development in the region, enhancing market confidence and encouraging investment.
Sattva Group Acquires 8.5-Acre Land in Bengaluru’s EPIP for Rs 300 Crore
Real estate developer Sattva Group has made a significant move by purchasing an 8.5-acre property in EPIP, Bengaluru, for Rs 300 crore. The property, which was previously owned by a high-net-worth individual, marks a strategic expansion for the company.
MHADA Lottery 2024: 19,000 Affordable Homes for Sale in MMR and Pune at ₹12 Lakh and Above
The Maharashtra Housing and Area Development Authority (MHADA) is set to launch a lottery for 19,000 affordable homes in the Mumbai Metropolitan Region (MMR) and Pune. The homes are priced starting from ₹12 lakh, offering a glimmer of hope for low and mid
Adani Group Eyes $4.1 Billion Mumbai Housing Project: A Major Real Estate Move
Billionaire Gautam Adani's real estate arm has emerged as the frontrunner to develop one of Mumbai's largest housing projects, valued at approximately $4.1 billion. This move underscores Adani's ambitious expansion into the real estate sector.
Private Equity Investments in Indian Real Estate Decrease by 4%
Private equity investments in the Indian real estate sector saw a decline of 4% in the recent period, signaling a shift in market dynamics and investor sentiment. This article explores the reasons behind this decrease and its implications for the industry