The realty focused fund of Nisus Finance is on funding spree by spotting investment-worthy residential projects that require last-mile funds to complete residential projects. Nisus Finance is one of India’s leading diversified financial services company and specializes in real estate services are going to invest through their debt fund of worth INR 500 crore by March’2021.
The company in its second fund is mainly focused on the acquisition of distressed real estate assets amidst coronavirus pandemic and providing a last-mile fund to complete stalled residential projects. Nisus Finance already announced its closure of the first realty focused fund named Real Estate Asset Performance Fund 1. Company in its first fund has invested around INR 430 crore in nine different real estate projects.
The new fund of INR 500 crore launched by Nisus Finance in partnership with Dalmia Group, which is expected to employ this fund by March next year. Both partners have committed INR 100 crore in this second fund and the remaining fund is gathered from HNIs and family offices. The new fund of INR 500 is known as Dalmia Nisus Finance Fund.
Nisus Finance has transacted more than INR 2,000 crore of real estate assets, managing INR 450 crore funds through its Alternate Investment Fund (AIF), NBFC, and third party asset management within the last couple of years.
The deployment of the fund is based on three keys strategies.
Firstly, the fund is focused on mid-income and affordable housing projects in the prominent micro-markets across major metro cities in India. Such incomplete residential projects require last-mile capital for completion and already have reasonable sales.
Second, the fund is captivated in distressed opportunities where there is considerable intrinsic value but needs new capital and a development partner. This new fund is mainly targeting those distressed assets by employing funds.
Lastly, this new fund will explore balance sheet financing for tier 1 real estate developers who are focused on consolidating the sector through joint venture/joint development or acquisition.
Real Estate Asset Performance Fund 1 of INR 430 crore, the company already exited from seven out of nine real estate projects investments. Nisus Finance is looking at exiting from the remaining two investments by the end of this year.