Nisus Finance and BCD Group Raise INR 450 Crore for Inaugural Real Estate Credit Fund
Nisus Finance and BCD Group have successfully raised INR 450 crore for their debut real estate credit fund, with plans to close fundraising by the end of the financial year.
Real EstateCredit FundNisus FinanceBcd GroupAffordable HousingReal EstateSep 22, 2024
Amit Goenka, Managing Director and CEO of Nisus Finance, highlighted the strong demand for last-mile construction finance, as numerous real estate projects remain unfinished. To date, Nisus has invested INR 450 crore in four transactions through RESO-1, which Nisus BCD Advisors LLP manages, out of a total fund corpus of INR 700 crore.
Recent investments include INR 60 crore in listed non-convertible debentures for Bengaluru's Project High Cliff and INR 105 crore in Shapoorji Pallonji Real Estate's subsidiary, Suvita Real Estate. The investment targeted acquiring a 12.16-acre land parcel in Pune's Manjari-Budruk area, a key growth market.
The fund's primary objective 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.
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.
information Nisus Finance is a leading financial services company that provides innovative solutions for real estate developers. BCD Group is a strategic partner and sponsor of Nisus Finance.
Nisus Finance is a subsidiary of Nisus BCD Advisors LLP, a joint venture between Nisus Finance and BCD Group. Shapoorji Pallonji Real Estate is a leading real estate developer in India.
Frequently Asked Questions
What is the name of the real estate credit fund launched by Nisus Finance and BCD Group?
The Real Estate Special Opportunities Fund-1 (RESO-1)
How much has Nisus Finance raised for its debut real estate credit fund?
INR 450 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 target internal rate of return (IRR) for the RESO-1 fund?
Between 18% and 22% over a five-year horizon
What is the role of Nisus Finance in addressing the financing gap for real estate projects?
Providing critical last-mile financing to help projects move from the development phase to completion
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