Realty fund managers float schemes for construction finance

03 Mar 2021 Editorial Team

Property fund management arms of Indiabulls, Motilal Oswal, and others are launching schemes and funds to lend construction finance to real estate developers.

With banks becoming selective and non-banking financial companies (NBFCs) almost stopping new lending, there has been a major gap in construction finance over the past two years, fund managers told the media.

Indiabulls Asset Management Company Ltd is in talks with global investors to float a joint venture (JV) to lend construction finance to developers.

Indiabulls said it has been financing construction since the inception of the fund, and it slowed from 2017 to 2020, which was due to the challenges faced by the residential sector at that time.

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

Recently, Motilal Oswal Real Estate launched its fifth fund called IREF V with a target of Rs 7,800 crore, which will focus on construction finance to developers. Motilal intends to invest this fund in post approval projects through senior secured lending across the country's top seven cities.

Motilal Oswal Real Estate said approximately Rs 260,000 crore of construction finance is required every year. After the Infrastructure Leasing and Financial Services (IL&FS) crisis, there has been a gap in capital availability.

Vishal Srivastava, president at Anarock Capital, said alternative investment funds (AIFS) were not in the Reserve Bank of India (RBI) jurisdiction and, therefore, asset quality deterioration would not affect the balance sheet.

Image Source

Also read: Govt sets up fund for stalled housing projects

Infrastructure Urban

09 Mar 2026

Flender Inaugurates Wind Gearbox Test Rig In Chennai

Chennai, 6 March 2026: Flender has inaugurated a 13.5 MW wind turbine gearbox test rig at its Walajabad facility near Chennai, marking the installation of the largest test rig of its kind in India. The facility was inaugurated on 5 March in the presence of Andreas Evertz, CEO, Flender Group; Lars Wiegemann, Vice President – Wind Gears; and Vinod Shetty, CEO, Flender India.The test rig has been developed to support testing and validation of wind turbine gearboxes, strengthening the company’s capabilities in the renewable energy sector. The commissioning was completed within three months thr..

BMW Industries partners with IOCL for PNG supply at Bokaro plant

BMW Industries has entered into a strategic partnership with Indian Oil Corporation (IOCL) for the supply of Piped Natural Gas (PNG), reinforcing its commitment to adopting cleaner and more efficient energy sources for its operations.The agreement was signed at the Eastern Region Pipelines (ERPL) headquarters in Kolkata. The partnership is expected to support the company’s upcoming manufacturing facility in Bokaro by facilitating the use of natural gas as a primary energy source.According to the company, the adoption of PNG will help enhance operational efficiency while also contributing to ..

Bombay Realty Secures RERA for Three ICC Tower in South Mumbai

Bombay Realty, the real estate arm of Bombay Dyeing and part of the Wadia Group, has received Real Estate Regulatory Authority (RERA) certification for Three ICC – Wing A, the latest luxury residential tower at Island City Center in Mumbai’s Dadar.The RERA registration marks a key milestone in the development timeline and reinforces the company’s focus on regulatory transparency, timely project delivery, and high construction standards.Following the success of One ICC and Two ICC, the upcoming Three ICC tower represents the next phase of the Island City Center development. The project ai..