Certus Capital, a real estate investment firm, has invested INR 150 crore in two mid-market housing projects in Mumbai Metropolitan Region (MMR) by JSB Group and Dynamix Group, targeting areas near Mumbai Airport and Vasai. Covering 385,000 sq ft, the projects could generate over INR 750 crore in revenue. This aligns with Certus's plan to invest INR 1,000 crore in secured credit by year-end. With investments in Pune, Chennai, and prospective ventures in Bengaluru and Hyderabad, Certus is diversifying its portfolio. The firm's digital platform Earnnest.me has attracted a 77% reinvestment rate, underlining investor confidence in its real estate-focused strategy.
Certus Capital, an institutional real estate investment firm, has made a significant investment of INR 150 crore in two mid-market housing projects located in the Mumbai Metropolitan Region (MMR). This funding will support developers JSB Group and Dynamix Group as they work on projects in strategic areas near the Mumbai International Airport and the expanding western suburb of Vasai.
The projects, which cover a total development area of 385,000 square feet, have the potential to generate over INR 750 crore in revenue. This investment aligns with Certus Capital's broader strategy to inject INR 1,000 crore into secured credit within the real estate sector by the end of this financial year. According to Ashish Khandelia, the founder of Certus Capital and Earnnest.me, the firm aims to back experienced developers in tier-1 cities, contributing to a growing high-yield bond market that focuses initially on real estate.
In the past three years, Certus Capital has successfully conducted nine deals through its digital secured debt platform, Earnnest.me. Notably, the firm has fully exited two of these deals, providing investors with returns exceeding 15%, ahead of their scheduled maturities. As of January 2024, the firm has invested around INR 450 crore and expects to close the year with total investments reaching INR 600 crore-a sixfold increase compared to the previous year.
The company's investment strategy is not limited to Mumbai alone. Certus Capital has financed various projects across cities like Pune and Chennai and is currently exploring opportunities in Bengaluru and Hyderabad. This approach allows the firm to maintain a diverse investment portfolio while tapping into different real estate markets. The firm's platform has also seen a strong interest from investors, with a 77% repeat investment rate.
Recently, Certus Capital expanded its offerings to institutional investors, securing a partnership with a notable firm that manages assets exceeding INR 1 lakh crore. This partnership includes a INR 50 crore investment in one of Certus's recent deals, demonstrating confidence in the firm's ability to deliver solid returns in the real estate sector.
The growth of mid-market housing is particularly significant given the rising demand for affordable housing in urban areas, driven by increasing population and economic development. As budgets for housing expand, developers are keen to meet this need, and investments from firms like Certus Capital play an essential role in this process.
Overall, Certus Capital's latest investments reflect a strategic focus on areas with high growth potential in the real estate market while also catering to a diverse group of investors. By continuing to foster partnerships with established developers, the firm is positioning itself to capitalise on the expanding real estate landscape in India.
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