Dalmia Nisus Finance Investment Managers LLP (“Dalmia Nisus”), an alternatives manager has recently exited their entire investment amount of ~INR 50 Cr in a project belonging to a wholly owned subsidiary of Puravankara Limited, through their Real Estate Credit Opportunities Fund – I (RECOF – I).
The Fund had invested in October 2020 and the exit comes at a time when many large NBFC’s and Banks are finding it difficult to exit from their loans to the real estate sector. The entire amount was repaid post Puravankara Ltd sold 100% of its stake in the subsidiary companies to a third party, as per their Exchange filing in Oct 2021.
Dalmia Nisus had invested the amount in a plotted development project spread across ~43 Acres of land located near Chennai with a total sale potential of ~1 Million sq.ft.
Bengaluru headquartered, Puravankara Limited is one of the most reputed developers in South India with a total development comprising of diversified premium & affordable-segment apartments & commercial spaces totalling to approx 41 million sq. feet. Purvankara Limited has recently also raised ~ USD 76 million from IFC and the IFC Emerging Asia Fund towards it affordable housing platform “Provident”. Puravankara Limited, listed on the BSE and NSE, has continued to be named among the most reputed developers in India with an excellent track record of delivering landmark projects.
RECOF – I, an AIF Category – II fund, registered with SEBI, with a corpus of INR 500 Cr is a real estate focussed fund which seeks to achieve superior, consistent and risk adjusted returns by making opportunistic medium term structured investments in mid-income, affordable housing and plotted development projects.
Dalmia Nisus Finance is the Investment Manager to the Fund which is jointly held by Dalmia Family Office helmed by Gaurav Dalmia as its Chairman and Nisus Finance Group, promoted by its MD & CEO, Amit Goenka.
This is the first exit from an investment for the Fund which announced its first close in March 2020.
Commenting on their investment, Gaurav Dalmia, Advisory Board Member, Dalmia Nisus Finance Investment Managers LLP said “Our capital provides a unique solution to good development companies while providing attractive risk mitigated returns to our investors. We are happy with the outcome of our investment and the furthering of our relationship with Purvankara”
Amit Goenka, CEO and Advisory Board Member of Dalmia Nisus Finance Investment Managers LLP added, “We have enjoyed a very mutually beneficial working relationship with Puravankara Group, but we also believe that markets a recovering now and projects from a strong brands such as Puravankara at upcoming locations are attracting a lot of interest from buyers due to affordability and future growth potential. Our investment in this project was uniquely structured to provide a superior return with the added safety of a brand like Puravankara along with a well-planned exit strategy. We always strive to create a win-win with our investee companies while significantly mitigating idiosyncratic risks. Our investors have generated a significant alpha due to the uniqueness of our structure and partnership. RECOF-1 is on its way to become an outperformer within the RE-PE space.
