Nisus Finance invests over Rs 60 crore in EON Group’s residential project in Mumbai
Nisus Finance & Investment Managers LLP, an alternative investment manager, has invested over Rs 60 crores in a premium boutique residential project of realty developer EON Group in Prabhadevi.
The project EON ONE spread over more than three-quarters of an acre near Siddhivinayak Temple involves redevelopment of an old housing society with rehabilitation of its existing 27 members.
While the rehabilitation part of the project is close to completion, the sale component has a total development potential of 1.5 lakh sq ft that will be completed by December 2025 as it has already secured all the approvals.
The project is expected to generate revenue worth Rs 400 crore based on the ongoing property rates in the vicinity.
“Our investment in this Project is uniquely structured to provide superior return to all stakeholders and timely delivery of the Project. EON Group has a good track record with a strong balance sheet,” said Amit Goenka, CEO Nisus Finance.
Nisus Finance & Investment Managers has invested in the project through a structured instrument of Non-Convertible Debentures (NCDs) for a total tenure of 48 months. The funding is aimed at accelerating construction activity and delivery of the project.
“Nisus Finance’s adeptness in structuring real estate investments is a key factor in bringing this unique project to life. We are confident that Nisus is the right capital partner to unlock maximum value from this project while swiftly delivering a very special and superior product,” said Palash Shah, MD, EON Group.
Prior to joining the family business, Shah had previously held positions in real estate private equity firms Brookfield Asset Management and Starwood Capital Group.
The project with two- and three-bedroom sea facing apartments has already achieved bookings for 20% of its inventory.
Nisus Finance has already invested funds in projects of listed developers like Shriram Properties and Purvankara Projects besides other key developers in Mumbai. In April, in the first ever private equity investment in a self-redevelopment project undertaken by a housing society, it had invested in a project in Mumbai’s Ghatkopar suburb.
Private equity investments into the real estate sector have continued to rise over the last few years and even the last two years despite the pandemic scenario.
The appetite for Indian real estate assets among both global and domestic institutional investors continues to be strong as they are eyeing a number of investment opportunities across residential, mixed-use, commercial, retail, industrial and other segments.