Domestic realty funds launch stressed funds to tap stalled projects

With very low sales and financing from banks and NBFCs drying up, fund managers expect good returns from their investments, experts said

Eyeing the opportunity presented by stalled real estate projects and cash-starved developers, domestic fund managers are launching new stressed asset instruments.

Following the ‘Special Window for Completion of Construction of Affordable and Mid Income Housing’ or SWAMIH Investment Fund by SBI Cap ventures, Ahmedabad-based Lumos Alternate Investment Advisors, as well as Mumbai-based Nisus Finance, have come up with funds for stressed real estate assets.

When sales are paltry and financing from banks/NBFCs is hard to come by, fund managers expect good returns on their investments, said experts.

Lumos has partnered with prominent developers for its maiden Rs 300-crore fund. The proposed fund will