The government-backed and SBICAP Ventures-managed last-mile financing platform, Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I) and realty credit fund Nisus Finance have invested a total over Rs 465 crore across two projects of Aliens Developers.
One of the projects, Aliens HUB, is a large scale plotted development project and the second project, Aliens Space Station, is a mega mid-income housing project, both located in key micro markets of Hyderabad.
Of this, Nisus has invested Rs 145 crore in both the projects and SWAMIH Fund has invested Rs 320 crore in the mid-income housing project with over 2,000 homebuyers.
“Nisus and SWAMIH have earlier partnered on two other mutual investment opportunities. Our investment in the mid-income housing project will help provide delivery to over 2,000 homebuyers. This investment is centric to our strategy in the fund to generate significant returns through a strongly risk mitigated structure with high asset and cash flow cover,” Amit Goenka, MD & CEO, Nisus Finance.
Nisus has invested the amount through its Real Estate Special Opportunities Fund-I (RESO-I), managed by Nisus BCD Advisors LLP. This investment is being utilized to take over the loans of the erstwhile lender Edelweiss and the balance for project expenses.
The Nisus BCD Fund will hold a senior secured and exclusive primary security on the plotted development project on the developer’s owned land spread across 272 acres in Chennaram locality. The project is a township with a golf course and other modern amenities for a plotted golf course living. The township has a total 2,400 plots with an average area of 2,700 sq ft with an estimated topline of over Rs 1,200 crores.
In the mid-income housing project, SWAMHI Fund has subscribed to rated debentures of Rs 320 crore issued by Aliens Developers and listed on the Bombay Stock Exchange (BSE). Both SWAMIH Fund and Nisus’ investment in this project will be utilised for the completion of the project.
Nisus Finance has cash flow sharing in this second project spread over 15 acres with saleable area potential of 3.4 million sq ft across 13 high-rise towers in Hyderabad’s Tellapur locality. The project is nearly 70% complete and has achieved 75% sales so far. The project for which Nisus has partnered with SWAMIH Fund for investment, has a total revenue potential of Rs 2,200 crore.
ET’s email query to SWAMIH Fund remained unanswered until the time of going to press.
This investment by Nisus and SWAMIH will help in ensuring the project will be completed and delivered tower wise and fully exited in 8-12 quarters.
Nisus Finance is focused on identifying highly value-accretive opportunities within real estate projects, offering enhanced yields and robust asset cover to unlock substantial value through structured capital. It makes opportunistic medium-term structured investments in mid-income, affordable housing, and plotted development projects.
Nirmala Sitharaman, the finance minister, introduced the SWAMIH Fund in September 2019, designating it as a category II alternative investment fund. This initiative emerged in response to escalating worries about stalled projects adversely affecting homebuyers and posing potential risks to the banking system.
In December 2022, the government invested over Rs 5,000 crore in this fund, taking its final value close to Rs 15,530 crore. This is among the biggest corpus raised by any funds in the country.
