Dalmia Nisus Finance has invested about Rs 80 crore in two real estate projects built by Puravankara Ltd and Shriram Properties in Chennai and Bengaluru and is close to finalising three additional investments totalling Rs 125 crore.
This sum was invested by Dalmia Nisus Finance Investment Managers LLP, an alternative asset manager, from its Real Estate Credit Opportunities Fund - I. (RECOF - I). Dalmia Nisus is a joint venture fund between Nisus Finance and the Gaurav Dalmia Group, led by industry veteran Amit Goenka.
These initial investments are part of the Rs 500 crore RECOF-1 Fund, which focuses on structured loan and mezzanine investments in the Indian residential market. The first closure of the RECOF-1 fund is scheduled for March 2020.
"On a long-term risk-adjusted basis, real estate structured capital remains a highly attractive asset class," stated Gaurav Dalmia, Chairman of the Fund's Advisory Board.
According to Amit Goenka, the Fund's Managing Partner and CEO, this is a once-in-a-lifetime opportunity for capital pools to capitalise on real estate possibilities. "We are thrilled by our investment in the Puravankara Group and Shriram Properties, and we feel that top deck companies like these will continue to exhibit remarkable growth and performance in the present climate," he added.
"Our investments are structured in such a way that they produce a win-win situation for our investee firms while also considerably reducing idiosyncratic risks. Because of the uniqueness of our structure and collaboration, our investors will gain high alpha," Goenka said.
The first deal is with Purvankara for planned development in Chennai, while the second is with Shriram Properties Ltd for Tanmathra Aquarelle Pvt Ltd's new gated community project. Shriram Chirping Grove is a project for Tanmanthra that Shriram is developing under a Development Management (DM) agreement. It is a gated community project in South Bengaluru that was launched in May of this year and has already sold over 40% of the current phase in less than two and a half months.
"The partnership with Dalmia Nisus Finance has been valuable to us because they bring immense understanding, sophistication, and deep engagement with the real estate sector, especially in affordable and mid-market housing and plotted development," said M Murali, Chairman and MD of Shriram Properties.
He said that collaborations like the one with Dalmia Nisus Finance will assist speed up the pace of current projects and sales. The fund is presently in the process of finalising three further investments in Mumbai, Pune, and Bengaluru totalling Rs 125 crore.
Source: Business Standard