Real estate credit fund Nisus Finance has invested over Rs 155 crore in a late-stage affordable housing project being developed by Dharmadev Group in Surat in Gujarat, taking its total investment in the company’s two projects to over Rs 250 crore.
The project is part of a larger layout on a 12-acre land parcel comprising 4.5 million sq ft. The first phase of the ongoing project comprises 21 towers with 1.3 million sq ft of saleable area.
Nisus has made this investment in Swaminarayan Green City through its Real Estate Special Opportunities Fund-1 (RESO-1) managed by Nisus BCD Advisors LLP.
In July 2023, RESO-1 had invested Rs 95 crore in Dharmadev Group’s late-stage commercial project located in Narol in Ahmedabad along with Kotak Mahindra Group’s asset reconstruction arm, Phoenix ARC.
“This investment by RESO-1 ensures significant returns through a strongly risk mitigated structure with high asset and cash flow cover,” said Amit Goenka, MD & CEO at Nisus Finance. “Surat is a high growth city with affordable housing being centric to the demand. The Dharmadev Group has a strong track record of delivering affordable homes in key micro markets of Gujarat over the last 50 years and this project is centric to their strength.”
The new investment of Rs 155 crore is being utilised to discharge the existing lender Omkara ARC, which acquired the loan from Piramal Capital & Housing Finance Limited as part of the legacy DHFL loan book and for completion of the project.
This investment is in line with the strategy of RESO-1 that looks to acquire or discharge loans of erstwhile lenders in projects that have high cash flows, significantly large covers, short exit periods and very compelling risk mitigated returns to standard credit opportunities.
The project has all the necessary approvals to deliver over 1,085 apartments across 21 towers with amenities, infrastructure and fit outs for home buyers over the next 12 to 24 months.
Of the 21 towers, seven have applied for an occupation certificate and the developer has already given possession of 250-300 units. Additionally, five towers are near the finishing stage and are expected to receive occupation certificates by next quarter.
The remaining 13 towers have nearly 50% of their super structures complete. With the investment from Nisus Finance, the project is expected to expedite construction works, and deliver within RERA timelines and specifications.
