Nisus Finance invests INR 50 Crores in affordable housing projects of Earthcon Universal

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Mumbai, December 8, 2017: Nisus Finance Services Co Pvt. Ltd. (NiFCO,) an alternatives manager with a Real Estate-focused Debt Fund has recently invested INR 50 Cr in Noida based Earthcon Infracon Pvt Limited, a subsidiary of Earthcon Universal Infratech Private Limited.

Noida based Earthcon Infracon Pvt Limited, has raised the capital from investors of NiFCO towards development of residential apartments in Earthcon Universal projects Casa Royale & Sanskriti located at GH-10, Sector-01, Greater Noida West, Uttar Pradesh. The investment is towards Earthcon Universal at a total development comprising of mid-segment apartments totalling to appx 2.3 million sq. feet. In this deal size of approx. Rs. 50 crores, NiFCO has partnered with Landmark Holdings, the real estate investment arm of the Dalmia Group, as a co-investor.

Commenting on their investment, Mr. Gaurav Dalmia, Chairman, Landmark Holdings said "In an otherwise slow market, niche opportunity at particular price point with focused developer can provide best risk adjusted returns. Earthcone's project is a live example of this”.

The Projects called ‘Casa Royale & Sanskriti’ are comprising of 1958 apartments; wherein Casa Royale comprises of 12 buildings and Sanskriti’ comprises of 5 towers. The project features modern architecture and planning with a much smaller environmental impact than other conventional apartment buildings. Given the attractive ticket size, brand image and strong completion track record, buyers have flocked to these projects despite the market conditions thereby demonstrating strong customer demand. The projects are on track with an aim to start handing over possession within this year and completing the entire development within two years.

All 5 towers of Sanskriti are due for delivery this December whereas the 12 towers of Casa Royale will start delivery from February 2018, and be completely handed over by December, 2018. About 82% of the project is already sold out and balance units are selling very rapidly.

Mr. Shadab Khan, Chairman, Earthcon Group, said, “We are committed to deliver homes to buyers in Greater Noida by next year. Our customers and buyers have reposed great confidence in us as is visible in our sales numbers. Institutional interest and trust in our development has been adequately demonstrated in partnering with NiFCO. NiFCO, with their integrated suite of financial solutions including investments, asset management, financial advisory and market development have helped us in accelerating project delivery and sales. Our sharp focus on quality, execution in mid-income housing to customer satisfaction and plotted development, differentiates us from our peers in the industry, accountability and fair practices makes us very relevant in current times.”

Nisus Finance focuses on late stage residential projects in the affordable and mid income segment by reputed developers with strong receivables and cash slows by way of factoring of receivables from past sales. Nisus Finance employs innovative product strategies with an exceptional structure to manage risk providing the highest safety margins for capital protection along with a potential for higher incremental upside.

Amit Goenka added, “Earthcon Group boasts of a strong legacy of delivery commitments, high management engagement, uncompromising business ethics and commitment to quality in all its endeavours. Earthcon Universal Infratech Private Limited stands apart from the others because of its core customer-centric approach. I am sure this partnership will go long way and prove to be win-win situation. This investment is in line with our strategy to back affordable housing and plotting projects that are customer focussed. While NCR, especially Noida is facing its worst credibility crisis amongst buyers and investors, there are groups like Earthcon who are distinguished by their commitment and focus.”

Date: 
Friday, December 8, 2017