Credent Global Finance in talks to raise Rs 5 bn for tier-II projects

Credent Global Finance (CGF), a BSE-listed, Sebi-registered NBFC, is in discussions to raise Rs 5 billion through AIF to fund mid-segment real estate development projects in tier 2 cities. According to CBRE, investment in real estate in India increased by 32% year on year to an all-time high of $7.8 million in 2022. Credent has acquired Essel Finance Private Equity in an all-cash transaction. This private equity firm has invested a little over Rs 2 billion in seven investee companies located in Mumbai, Pune, and Bengaluru. These investments are being sold by the company. The new fund will be divided into two AIFs, one focusing on tier 2 cities and the other on independent housing. Indore, Chandigarh, Lucknow, and Baroda are among the cities under consideration. According to a recent survey, Ahmedabad, Vadodara, Nashik, Gandhi Nagar, and Jaipur have emerged as the top five tier-II cities in terms of residential property market growth, owing to growing urbanisation, industrialisation, and the rise of the IT industry. According to the survey, there has been a significant increase in both absorption and supply of quality residential homes in various price ranges in these locations. The report has tracked performance of the residential segment of the real estate sector in various tier-II cities from FY 2017-18 to FY 2021-22. Also Read Gati Shakti will assist in lowering logistical barriers: DPIIT The Railway Ministry launches INR 2 trillion budgetary push