The promotors of Noida-based real estate developer Nirala World and Sea Fund have launched an Alternative Investment Fund (AIF) worth Rs 2,000 core to invest in real estate projects across India.
The SGRE Fund is a scheme-based fund, registered with Sebi under Category II. The AIF aims to provide financial assistant as investment and loans through debenture and equity to realtors struggling to get funding to revive or complete projects, Nirala World said in a statement.
The fund plans to invest in all types of residential and commercial real estate projects, and has already invested Rs 125 crore across two held up projects in Noida.
The company said that another round of disbursement is expected soon and for this, SGRE Fund has also applied for 2nd scheme through equity participation having worth Rs 500 crore.
Suresh Garg, lead promoter of SGRE Fund said that 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,” he said.
SGRE Fund has currently invested in projects which are stuck due to lack of funds and is ready to fund projects that are struggling to get funding from banks, financial institutions and from other alternative funds.
The SGRE Fund will secure its return through equity share and debenture participation. 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.
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