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An executive at Certus Capital, an institutional real estate investment and advisory firm, has revealed the company's ambitious strategy to infuse a substantial sum of INR 1,000 crore into the Indian real estate sector over the forthcoming year through secured credit mechanisms. Ashish Khandelia, a former director at KKR, established Certus Capital, which has already allocated approximately INR 400 crore to its secured bond platform, Earnnest.me. It is anticipated that the firm will conclude the fiscal year with cumulative investments surpassing the INR 500 crore milestone.
Since its inception in 2018, Certus Capital has expertly guided institutional investors through Indian real estate opportunities valued at nearly INR 10,000 crore. At present, the firm is channelling its efforts towards leveraging its proprietary platform, which was initiated two years ago. Through Earnnest, Certus Capital endeavours to catalyse real estate debt capital markets, assuming the role of a market maker.
The latest initiative by Certus Capital involves a INR 130 crore investment in two commercial real estate projects by Mittal Brothers in Pune, facilitated through its secured bond platform. Certus Capital envisions the investment as secured debentures, which will yield fixed returns of approximately 15% while strengthening them with strong principal coverage facilitated by underlying cash flows. Together, the projects boast a combined revenue potential of INR 800 crore. One of the aforementioned projects, located on Fergusson College Road, spans 260,000 square feet and is in an advanced stage of development.
Here, Certus plays a crucial role by providing last-mile funding while witnessing notable levels of sales and leasing traction, as demonstrated by the occupancy of prominent brands such as Pantaloons, McDonald's, Max, and Nonna's pizza chain. The second project, sprawled over an acre of land on Bundgarden Road, holds a development potential of 300,000 square feet. Positioned as an early-stage investment, its primary purpose is to facilitate land-related activities and secure necessary approvals. Khandelia underscores the robust deal pipeline and the strong performance of the property market across various segments, instilling confidence in the sector.
The recent investment in Pune mirrors Certus Capital's commitment to deploying INR 500 crore within the ongoing financial year. In January, Earnnest.me achieved a profitable exit from its inaugural investment in the affordable housing segment, boasting a net return of 16.1%, a year ahead of schedule. Concurrently, it consolidated its position in a premium boutique residential project in Mumbai's Prabhadevi, while also reaffirming its confidence in a residential venture in Chennai. Through such strategic manoeuvres, Earnnest.me aims to democratise access to institutional-grade investment opportunities, making them accessible to individual investors and thereby enhancing risk-mitigated returns.
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