Certus Capital has completed investments worth over Rs 400 crore through three real estate funding transactions, as part of its plan to invest Rs 1,000 crore in India’s real estate sector for 2024-25.
The company recently invested around Rs 125 crore in a premium housing project in Chennai, acquired by Casagrand, and Rs 130 crore in Mittal Brother’s project in Pune. Additionally, Certus Capital has finalised deals to invest over Rs 150 crore in two more projects in Mumbai.
The Chennai project, located in a city-centric area, is expected to generate substantial revenue, with an estimated potential of Rs 475 crore. This investment aligns with Certus Capital’s strategy to partner with established developers and provide growth capital. Ashish Khandelia, founder of Certus Capital and Earnnest.me, noted the robustness of the Chennai market, which saw a 37% year-on-year growth in 2023.
Casagrand, led by entrepreneur Arun MN, sold 5.8 million sq ft in 2022-23, ranking fifth among listed real estate players in India. The investment in Chennai, structured as secured debentures, is projected to yield around 15% fixed returns, supported by strong principal cover from underlying cash flows.
In January, Earnnest.me exited its first investment in the affordable housing sector, achieving a 16.1% net return a year ahead of schedule due to the project’s strong performance. The platform has also strengthened its position in EON Group’s premium boutique residential project in Mumbai’s Prabhadevi by buying out its 50% partner. Additionally, Earnnest.me made a repeat investment in a residential project in Chennai, leveraging its proprietary deal access.
Earnnest.me aims to democratise access to institutional-quality investment opportunities, making them affordable for individuals and enhancing risk-mitigated returns.
India’s residential property market continues to reach new heights, supported by stable economic conditions, positive buyer sentiment, and supply from established developers. According to JLL India, the top seven property markets in the country recorded total sales of 74,486 apartments in the first quarter, marking the second consecutive quarter with sales exceeding 74,000 units. This follows the record-breaking performance of 75,591 apartments sold in the December quarter.