BENGALURU: Real estate credit fund Nisus Finance, along with its sponsor and strategic partner BCD Group, has raised Rs 450 crore for its maiden fund.
The firm expects to close the final fundraising for its Real Estate Special Opportunities Fund-1 by the end of this financial year.
“We are in the process of raising Rs 150 crore and have seen a very high response from our existing and new investors. There is a need for last-mile construction finance, with many projects still stuck in the completion phase,” said Amit Goenka, managing director and chief executive of Nisus Finance.
The firm has so far invested Rs 450 crore across four deals from RESO-1, managed by Nisus BCD Advisors LLP, with a total corpus of Rs 700 crore.
Recently, the firm invested Rs 60 crore through listed non-convertible debentures in a late-stage residential development, Project High Cliff, in Bengaluru, followed by about Rs 105 crore in Shapoorji Pallonji Real Estate’s wholly owned subsidiary, Suvita Real Estate, towards a 12.16-acre land parcel in the Manjari-Budruk locality of Pune.
The fund’s objective is to invest in mid-income, affordable housing and plotted development projects to realise value through capital in a special situation fund.
“The fund aims for an internal rate of return of 18-22% over a five-year period, with the possibility of extending for an additional two years. It focuses on generating substantial alpha while ensuring a well-mitigated risk profile and sufficient asset backing,” Goenka said.
