Nisus-BCD Fund Makes Investment Of Rs 60 Cr In Project High Cliff
Nisus Finance, a real estate credit fund, has invested Rs 60 crore in High Cliff, a late-stage residential development in Bellandur, Bengaluru, through listed non-convertible debentures. The recent investment will be used to refinance existing debt and complete the project on time. The luxury project spans over 1.4 acres of land and has a saleable area of approximately 2.4 lakh sqft.
This investment marks the third investment from Nisus Finance's real estate special opportunities fund-1 (RESO-1). The fund has a corpus of Rs 700 crore and is managed by Nisus BCD Advisors.
"The recent investment is in line with our strategy for the RESO-1 Fund, which aims to generate significant alpha while having a strongly risk-mitigated structure with high asset and cash flow cover," said Amit Goenka, Managing Director (MD) & chief executive officer (CEO) of Nisus Finance.
This investment represents the third investment from Nisus Finance's Real Estate Special Opportunities Fund-1 (RESO-1), which is managed by Nisus BCD Advisors and has a corpus of Rs 700 crore.
The project is located in Bellandur, one of Bengaluru's key micro-markets, with significant tech parks and excellent connectivity. It consists of approximately 196 affordable and mid-income housing units of 1, 2, and 3 BHK units. The fund infusion will help expedite the project, enhancing its development and growth prospects.
"The Southern market is currently very stable due to the high demand from individual buyers. This market is also more underwriteable, making it an attractive investment opportunity. We are actively looking for more investment opportunities in the coming quarters," said Angad Singh Bedi, MD of BCD Group, which is a key fund sponsor.
The fund has a duration of five years, which can be extended by two years, and aims for a gross IRR of approximately 20 to 21 per cent.
The fund plans to invest in mid-income, affordable housing and plotted development projects to unlock value through capital in special situations. In 2022, Nisus and BCD India signed an agreement to collaborate on projects. Nisus will contribute its financial expertise, while BCD India will provide its technical expertise, sales and customer relationship management.
Nisus Finance Group manages two real estate-focused alternative investment funds, RECOF-I and RESO-1, with a total corpus of approximately Rs 1200 crore.
