Investment firm Nisus Finance Services will double its fund size to ₹1,000 crore by December and invest in distressed real estate, mid-income housing and SME financing.
“Today, our fund amounts to about ₹400 crore and we will increase it by ₹500 crore by December. There is another ₹100 crore in our NBFC (Nisus Fincorp). By year-end, we will have AUM (asset under management) of ₹1,000 crore,” Amit Goenka, Managing Director and Chief Executive Officer, Nisus Finance, told BusinessLine .
The investors in the fund are Indian family offices, mid-sized corporates and large promoter families.
Growth opprtunities
“There is also global investor interest, but that is something we will tap into only by early next year. We have put it on hold due to rupee fluctuation,” he added.
The distressed opportunity in real estate has become very large, especially post implementation of the Real Estate (Regulation and Development Act), GST and demonetisation. “We are looking at projects where promoters have not taken out the money and there are chances of completing the project,” he said. Nisus is taking over only those projects not under the Insolvency and Bankruptcy Code, 2016 . It either brings in a third-party developer to complete a project or finances the developer to help complete the project. “In this case, we take over the financial control and allow the developer to complete it,” he said. Goenka said that Nisus will only consider projects in the Mumbai Metropolitan Region (MMR), NCR, Hyderabad, Bengaluru and Pune.
Mid-income housing is the fastest growing sector in residential real estate and “that remains our focus area,” Goenka said.