The Edelweiss group is targeting to raise $1 billion from international institutional investors over the next 12 months for its financing platform targeted at housing projects. The platform will have several funds under it. 

The fund has been announced with a partnership between Edelweiss Alternative Asset Advisors (EAAA) and leading South Korean Financial services conglomerate Meritz Financial Group. The first fund is targeted to be of $ 425 million.

The Edelweiss platform will house similar funds that will buyout existing residential real estate loans, and provide requisite completion financing to good quality, commercially-viable projects. The funds within the platform will be managed by Edelweiss' Alternative Asset Management business.

EAAA, India’s largest alternative asset management platform worth $3.6 billion, is a specialist in providing high quality credit/yield-based investment opportunities and strategies to international institutional investors as well as domestic investors and UHNI families. 

One of the key objectives of the platform is to identify and invest in commercially viable, good quality projects, and provide them with financing and project management skills needed for the successful completion and delivery of homes. This will benefit home buyers and lenders. It is also expected to boost real estate dependent industries like steel, cement, iron and ither allied ancillaries, including small scale industries.

The partnership between Meritz and EAAA, is aligned with the Union government's intent to support the residential real estate sector in India, with the recently announced Rs 25,000 crore allocation to Alternative Investment Funds for last-mile financing for middle income and affordable housing projects. 

Newly released data from property consultants JLL shows a 59 per cent increase in residential housing sales in the last 9 months of 2019, compared to that of 2017, pointing to an uptick in housing demand, a trend that is expected to continue with benign interest rates. 

Edelweiss group, Chairman & CEO, Rashesh Shah said, "We are confident that this platform will expedite the delivery of finished homes to the Indian market, by channelling patient capital to sound projects. A thriving real estate sector is important for the economic well-being of India, especially for the jobs it can directly generate, and for the many small businesses that thrive alongside it. We are excited that in a small way, Edelweiss will be able to aid in its revival, by helping good projects get timely access to global expertise and financing."

For Edelweiss, this partnership with Meritz is the first with an Asian Institutional investor. In recent months, apart from attracting marquee investors in its private credit funds, Edelweiss has also partnered with large global institutional investors like CDPQ, one of Canada’s largest pension funds in its credit business, US based Kora management in its Investment Advisory business and Arthur J Gallagher in its Insurance Advisory business.

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