SGRE Fund, an Alternative Investment Fund worth Rs. 2,000 Cr. has been launched by promoters of Nirala World and Sea Fund. SGRE Fund will provide finance to real estate companies in form of investment and loans through debenture and equity participation which are struggling to get funds for revival of the projects and their completion. The fund plans to invest in all types of Residential and Commercial real estate projects across Delhi-NCR region.
SGRE Fund is Scheme based fund and it is registered with the Securities and Exchange Board of India (SEBI) under Category II. Two payouts from the fund's first program, which has a total value of Rs. 125 Cr., have already been paid to companies. As mentioned by the SGRE Fund, another round of disbursement is expected soon because they are at the various stages of due diligence, economic viability and technical feasibility which includes land title, dues, legal formalities, etc. For this, they have applied for approval worth Rs. 500 Cr. To expand its portfolio, SGRE Fund has also applied for 2nd scheme through equity participation having worth Rs. 500 Cr.
Suresh Garg lead promoters of SGRE Fund says that, “we are excited to announce the launch of this fund dedicated to the real estate sector. Any project which has a requirement of the fund the company can apply for the fund. Our legal and technical team checks the feasibility and after the standard process of examination, they recommend a proposal to the standing committee for final go ahead. If the project is economically viable, land title is clear and there is no legal issue with the project then such projects will be eligible for funding. However the last decision will be of the investment committee.”
SGRE Fund has also currently invested in projects which are stuck due to lack of funds and is ready to fund projects which are struggling to get funds from banks, financial institutions and from other Alternative Funds. We are also ready to fund promoters who require to infuse initial funding for the eligibility of SWAMIH Fund. The vision is to become ‘Real Partners of Real Estate’, says Suresh Garg, the promoter of SGRE Fund and CMD of Nirala World.
The SGRE Fund will secure its return through equity share and debenture participation. Mr. Garg further added that we have a background of finance and real estate both, hence, we have a deep knowledge of the sector in terms of demand and supply, sentiments, sales, construction, revenue generation and critical issues pertaining to the completion of the projects. The benefits of overall experience will be passed on to the promoters who are in real need.
The Fund will be raised from third-party capital from sophisticated institutional and individual investors in accordance with SEBI guidelines. This includes family offices, high net-worth individuals, insurance companies, pension funds, banks, financial institutions, sovereign funds, multilateral institutions, and other sophisticated and institutional investors.
The Fund is promoted by Mr. Suresh Garg- of Nirala World and Mr. Sanjay Gupta- Director, Sea Fund jointly. Both belong to finance backgrounds. Apart from a seasoned Chartered Accountant, Mr. Suresh Garg, as CMD of Nirala World, has delivered more than 10 million sq. ft. in residential category including Nirala Eden Park, Nirala Estate and Nirala Trio, under-construction project, and all set to launch two new commercial project in the Greater Noida West.
