The real estate sector in Pune received a shot in the arm with the announcement of a significant investment by Nisus Finance. The company, along with its partner BCD Group, has committed over Rs 105 crore to Suvita Real Estate, a wholly-owned subsidiary of Shapoorji Pallonji Real Estate.
This investment, made through senior secured listed non-convertible debentures (NCDs), marks the fourth venture for Nisus Finance's flagship "Real Estate Special Opportunities Fund-1" (RESO-1) within the past six months. The fund, managed by Nisus BCD Advisors, has a total corpus of Rs 700 crore.
The NCDs issued by Suvita Real Estate are listed on the Bombay Stock Exchange's wholesale debt segment. The funds will be utilized for the development of a land parcel exceeding 12 acres in Manjari-Budruk, an eastern suburb of Pune witnessing rapid growth. This project has the potential to be transformed into a sizable affordable housing mixed-use township, boasting a saleable area of over 2.1 million square feet.
This strategic investment aligns perfectly with the vision of RESO-1, which focuses on identifying and capitalizing on promising opportunities within the real estate sector. Manjari-Budruk's strategic location on the Pune-Solapur highway, coupled with its ongoing development, makes it an attractive proposition for the development of affordable housing projects.
Commenting on the development, Yatin Khanna, Director at Nisus Finance, highlighted the significance of the investment, stating, "We are delighted to partner with Shapoorji Pallonji Real Estate, a renowned name in the Indian real estate industry. This investment aligns perfectly with our strategy of identifying and supporting well-located projects with strong potential for value creation."
Shapoorji Pallonji Real Estate also expressed their satisfaction with the collaboration. "We are pleased to collaborate with Nisus Finance on this project," said a company spokesperson. "This investment will significantly contribute to the development of our project in Manjari-Budruk, enabling us to deliver much-needed affordable housing options in Pune."
Analysts believe that this investment is indicative of the growing investor confidence in the Pune real estate market. The city's thriving economy, coupled with its burgeoning population, is creating a sustained demand for affordable housing, making it an attractive market for both developers and investors.