Dalmia Nisus Finance Investment Managers LLP has successfully exited its investment from the Real Estate Credit Opportunities Fund - I (RECOF-I), marking a significant milestone in its focus on profitable real estate investments in India. In July 2022, RECOF-I invested INR 40 crore in Shriram Properties' Chirping Ridge project in Bangalore, achieving an impressive internal rate of return (IRR) of approximately 19% within two years. This success highlights Dalmia Nisus's effective investment strategy and strong partnerships with developers. With a total corpus of INR 1,500 crore for its Real Estate Special Opportunities Fund - I, the firm is well-positioned to capitalise on high-yield opportunities in the evolving Indian real estate market.
Dalmia Nisus Finance Investment Managers LLP (Dalmia Nisus) has successfully exited its investment from the Real Estate Credit Opportunities Fund - I (RECOF-I). This marks a significant achievement for the alternative asset manager, part of the Nisus Finance Group, as it continues to focus on profitable real estate investments in India.
In July 2022, RECOF-I invested INR 40 crore in Shriram Properties' Chirping Ridge, a planned development project located near Jain Heights in Bangalore. The fund has exited this investment within two years, achieving an impressive internal rate of return (IRR) of approximately 19%. This exit underscores the effectiveness of Dalmia Nisus's investment strategy, which targets mid- to late-stage real estate projects.
The Chirping Ridge project spans 21 acres in Malur Taluk, Kolar district, Karnataka, and has a total development potential of 5.49 lakh square feet. The investment from Dalmia Nisus played a crucial role in accelerating the development and sales of this prime project, which has seen substantial progress over the past couple of years. Murali, Managing Director of Shriram Properties, noted that Nisus understands the project well and has worked closely with their team to complete it efficiently.
The success of this investment is also attributed to the streamlined processes and personalised solutions provided by Dalmia Nisus. Kishore Jain, Managing Director of Jain Heights, emphasised the importance of their responsive team in securing funds, which ultimately facilitated the project's timely exit. This collaboration has not only benefited the stakeholders involved but also contributed to the overall growth of the real estate sector in Bangalore.
Dalmia Nisus operates with a INR 500 crore fund that primarily invests in structured credit and mezzanine financing across India's residential market. The firm's strategy focuses on partnering with strong developers like Shriram Properties to ensure successful project completions.Amit Goenka, CEO of Nisus Finance, highlighted the positive impact of regulatory frameworks like RERA (Real Estate Regulation Act) in boosting buyer confidence and accelerating project sales. He emphasised that their investments are yielding dividends for investors, projecting a 19% net IRR with all investments successfully exited within four years.
The RECOF-I fund has largely exited its portfolio investments, with only one remaining investment expected to be exited in the next three months. This successful track record demonstrates Dalmia Nisus's commitment to delivering high returns to its investors while maintaining a focus on compliance and project completion.
As the real estate landscape in India continues to evolve, funds like RECOF-I and other AIFs (Alternative Investment Funds) managed by Nisus Finance Group are poised to unlock significant value through structured capital. With a total corpus of INR 1,500 crore for their Real Estate Special Opportunities Fund - I (RESO-I), the group aims to capitalise on high-yield opportunities within the market, reinforcing their position as a key player in the Indian real estate investment sector.
In summary, the exit from Shriram Properties' Chirping Ridge project not only reflects Dalmia Nisus's effective investment strategy but also signals a positive trend in the Indian real estate market, driven by strong partnerships and regulatory support. As the sector continues to mature, such successful exits will likely encourage more investments and foster growth in the coming years.
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