Nisus Finance’s through its Special Opportunities fund “REAL ESTATE SPECIAL OPPORTUNITIES FUND-1 (RESO-1)” managed by Nisus BCD Advisors LLP, has recently invested ~INR 155.00 Cr in Swaminarayan Green City, an affordable residential housing project located in Surat, Gujarat being developed by the Dharmadev Group.
Nisus Finance RESO-1 fund had invested Rs. 95 crores with the Dharmadev Group in July 2023 last year, in Swaminarayan Business Park, a late-stage commercial Project located in Narol, Ahmedabad, along with Kotak’s Asset Reconstruction Arm – Phoenix ARC”.
With this new investment, the total investment into the Dharmadev Group stands at Rs. 250 crores. The total investment of Rs. 250 crores by Nisus Finance, across the two projects in Ahmedabad and Surat of Dharmadev Group are diversified across cities and asset classes of commercial and affordable housing.
Nisus BCD Advisors LLP (“Nisus BCD”), is an alternative asset manager of Nisus Finance Group which manages the Rs. 700 Crores RESO-I fund.
The new investment of Rs. 155 crores are utilized to discharge the existing lender Omkara ARC, which acquired the loan from Piramal Capital & Housing Finance Limited as part of the legacy DHFL loan book and for completion of the project called “Swaminarayan Green City, Surat”
This investment underscores the strategy of Nisus Finance RESO-1 Fund which looks to acquire or discharge loans of erstwhile lenders in projects that have high cash flows, significantly large cover, short exit period and very compelling risk mitigated returns to standard credit opportunities.
Swaminarayan Green City project is being developed by Dharmadev Group through its Development Entity ‘Satya Sankalp Buildcon LLP’, situated in Surat. The Project is part of a larger land of ~ 12.00 Acres comprising of 4.5 Mn sq. ft. out of which Phase 1 is an ongoing project comprising of 21 towers with 1.3 Mn square feet of saleable area. This strategically located affordable housing project has all the necessary approvals to deliver over 1085 apartments across these 21 towers, with all modern amenities, infrastructure, and fit outs for the home buyers over the next 12 to 24 months.
Out of the 21 towers, 7 towers have already applied Occupation Certificate and Developer has already given possession over to ~250- 300 Units. Additionally, 5 towers are near to finishing stage and shall receive Occupation Certificate by next quarter.
The balance 13 towers have their super structure complete by nearly 50% and with the investment from Nisus Finance, the Project shall be able to expediate the construction works; and deliver within RERA timelines and specifications.
Located about 10 kms from the Surat Railway Station, the Swaminarayan Green City Surat is prominently located on the key arterial road of Kamrej- Varachha Road, with key public amenities like prominent schools, hospitals and other civic amenities with the vicinity. With over 1,000 apartments being built with an average size of nearly 1,200 sq feet, the project offers affordable spacious homes with modern amenities to homebuyers.
Dharmadev Group promoted by its Chairman, Mr. Umang Thakkar has successfully delivered over 30 million square feet across several projects in Gujarat. Neel Thakkar, MD, Dharmadev Group is accelerating this Project as well as the commercial project in Ahmedabad. The Group owns several prominent land banks across several cities of Gujarat and is foraying into Mumbai.
Mr. Amit Goenka, MD& CEO Nisus Finance commented “Our continued partnership with the Dharmadev Group for their affordable housing project in Surat, is testimony of the partnership approach of our fund to deliver high value to all stakeholders. This investment in the RESO-1 Fund ensures significant alpha through a strongly risk mitigated structure with high asset and cash flow cover. Surat is a high growth city with affordable housing being centric to the demand. The Dharmadev Group has a strong track record of delivering affordable homes in key micro markets of Gujarat over the last fifty years and this project is centric to their strengths. The Swaminarayan Green City project met our stringent due diligence on legal compliances, approvals, home buyer demand and ability to deliver on promises within a short span of time.
Mr. Umang Thakkar, Chairman, Dharmadev Group, stated, “We are proud of our association with Shri Amit Goenka, Nisus Finance and Phoenix ARC across our projects. In true partnership style, they have been quick to understand the immense potential of the Project and created a win-win for all stakeholders in mutually discharging the claims of the erstwhile lenders while helping accelerate the completion and deliverables of this affordable housing project. We are certain of completing delivery and handover of Swaminarayan Green City Surat within the next two years. We are proud to be able to finally give over 1,000 families their dream homes at affordable rates but with best-in-class amenities that is synonymous with our brand and track record. We are already witnessing strong demand for this project.” Nisus Finance Group led by industry veteran Amit Goenka, manages several AIF funds RECOF – I, an AIF Category – II fund with a corpus of INR 500 Cr and “Real Estate Special Opportunities Fund-I” (RESO-I), with Rs. 700 Crores corpus are focussed on investment in highly value accretive opportunities which provide higher yield and asset cover to unlock value through structured capital within highly profitable and de-risked projects.