Nisus Finance exits Puranik Projects

27 Sep 2023 CW Team

This investment was initially made through the Real Estate Credit Opportunities Fund-I (RECOF-I) in January 2023, and it has been exited within a span of nine months. The exit generated an impressive return, boasting an internal rate of return (IRR) exceeding 25%. The profitability of this exit was driven by substantial cash flows and the subsequent takeover of the projects by a prominent asset reconstruction company.

Amit Goenka, CEO of Nisus Finance, emphasised the ability of their investments to provide swift payouts and returns to investors while allowing for prompt redeployment of capital, ultimately resulting in significant multiples on invested capital. This approach aligns with their special situations and last-mile funding strategy, which focuses on identifying robust opportunities that create value and yield exceptional returns for all stakeholders, including investors and developers.

Dalmia Nisus Finance is a joint venture between the Nisus Finance Group, led by Amit Goenka, and the Dalmia Group, headed by Gaurav Dalmia. The investment mentioned was part of a Rs 5 billion fund primarily dedicated to structured credit and mezzanine investments within the residential real estate sector in India.

The investment from the RECOF-I fund played a pivotal role in expediting the development and sales of the Rumah Bali and Tokyo Bay projects.

Puranik Builders has an impressive track record, having delivered over 6.5 million square feet in various micro-markets, including Thane, Pune, and the Mumbai Metropolitan Region (MMR).

Rumah Bali, one of the projects, spans nearly 15 acres adjacent to Ghodbunder Road and has a total development potential of 1.6 million square feet. It features affordable residential apartments across 40 habitable floors commercial office spaces on the ground and two additional floors.

Tokyo Bay, part of a larger layout spanning nearly 15 acres near Thane's Anand Nagar locality, also has a total development potential of 1.6 million square feet, including affordable housing units.

The RECOF-I fund is experiencing rapid exits across its portfolio investments, primarily due to robust sales and collections. High demand from homebuyers, especially in the MMR, has contributed to this success. The fund anticipates exiting all its investments within the next 12 months, achieving capital deployment and return within four years while providing quarterly distributions and attractive returns.

The Nisus Finance Group oversees several alternate investment funds, including RECOF-I and RECO-1, with a combined corpus of Rs 14 billion. RECO-1, in particular, focuses on achieving superior, consistent, and risk-adjusted returns through opportunistic medium-term structured investments in mid-income, affordable housing, and plotted development projects within the real estate sector.

Dalmia Nisus Finance Investment Managers LLP, an alternative asset manager affiliated with the Nisus Finance Group, has successfully divested its Rs 1.25 billion investment in two residential-oriented projects developed by Puranik Builders. This investment was initially made through the Real Estate Credit Opportunities Fund-I (RECOF-I) in January 2023, and it has been exited within a span of nine months. The exit generated an impressive return, boasting an internal rate of return (IRR) exceeding 25%. The profitability of this exit was driven by substantial cash flows and the subsequent takeover of the projects by a prominent asset reconstruction company. Amit Goenka, CEO of Nisus Finance, emphasised the ability of their investments to provide swift payouts and returns to investors while allowing for prompt redeployment of capital, ultimately resulting in significant multiples on invested capital. This approach aligns with their special situations and last-mile funding strategy, which focuses on identifying robust opportunities that create value and yield exceptional returns for all stakeholders, including investors and developers. Dalmia Nisus Finance is a joint venture between the Nisus Finance Group, led by Amit Goenka, and the Dalmia Group, headed by Gaurav Dalmia. The investment mentioned was part of a Rs 5 billion fund primarily dedicated to structured credit and mezzanine investments within the residential real estate sector in India. The investment from the RECOF-I fund played a pivotal role in expediting the development and sales of the Rumah Bali and Tokyo Bay projects. Puranik Builders has an impressive track record, having delivered over 6.5 million square feet in various micro-markets, including Thane, Pune, and the Mumbai Metropolitan Region (MMR). Rumah Bali, one of the projects, spans nearly 15 acres adjacent to Ghodbunder Road and has a total development potential of 1.6 million square feet. It features affordable residential apartments across 40 habitable floors commercial office spaces on the ground and two additional floors. Tokyo Bay, part of a larger layout spanning nearly 15 acres near Thane's Anand Nagar locality, also has a total development potential of 1.6 million square feet, including affordable housing units. The RECOF-I fund is experiencing rapid exits across its portfolio investments, primarily due to robust sales and collections. High demand from homebuyers, especially in the MMR, has contributed to this success. The fund anticipates exiting all its investments within the next 12 months, achieving capital deployment and return within four years while providing quarterly distributions and attractive returns. The Nisus Finance Group oversees several alternate investment funds, including RECOF-I and RECO-1, with a combined corpus of Rs 14 billion. RECO-1, in particular, focuses on achieving superior, consistent, and risk-adjusted returns through opportunistic medium-term structured investments in mid-income, affordable housing, and plotted development projects within the real estate sector.