Real estate-focused private equity fund Nisus Finance is planning to raise around Rs 700 crore from domestic investors, and invest Rs 500 crore out of that in stressed realty assets over the next three years, a top executive said.
The company has also identified projects across Mumbai, Noida, Bengaluru and Pune to begin with.
"Nearly USD 20-30 billion worth of real estate assets are under stress. These are largely good assets and we see them as a huge opportunity to provide finances and make good returns," Amit Goenka, managing director and chief executive officer, Nisus Finance, told PTI.
According to a recent survey by consulting firm KPMG, at the end of 2017, real estate developers accounted for USD 20 billion worth of stressed bank loans.
"We will be raising Rs 700 crore from domestic investors. Out of this, around Rs 500 crore will be invested in distressed realty assets over the next three years," said Goenka.
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He further said the company has identified three projects in Noida Extension, three in Mumbai - one each in Dadar, Goregaon and Andheri - and one each in Bengaluru and Pune.
"We are looking at investing around Rs 30-50 crore in each project. Also, we will be investing with developers who have a minimum of one lakh sq ft of development, because we are sure they have the capacity to take it to 10 lakh sq ft over the period," he added.
Nisus Finance is an asset management and advisory firm that runs a Rs 350-crore asset management firm, offering mezzanine finance for mid-market residential developments.
The company provides institutional and individual investors with investment and advisory solutions, with strategies spanning asset classes, industries and geographies.
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