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Edelweiss has partnered South Korea’s Meritz Financial group to launch the first fund of $425 million

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The fund will be managed by Edelweiss’ Alternative Assets platform, which manages $3.6 billion in assets.

The Edelweiss group is planning to raise up to $1 billion in dedicated real estate funds, and deploy the proceeds in completion financing for housing projects stuck due to liquidity or solvency constraints.

This move comes a week after finance minister Nirmala Sitharaman announced establishing an alternative investment fund (AIF) to give last-mile financing to lower and middle income housing projects.

Edelweiss has partnered South Korea’s Meritz Financial group to launch the first fund of $425 million.

“We have identified about ten housing projects in Mumbai and Delhi-NCR that will be provided with completion financing by the fund,” Venkatchalam Ramaswamy, executive director at Edelweiss Group, told ET. “Edelweiss’ project management skills will be used to complete these housing projects and deliver the homes to the end users.”

The first tranche of this fund will likely close this week at $270 million, with Meritz making the majority investment commitment. Another tranche of $155 million would also be launched soon following the first series deployment.

The fund will buy out existing loans of these projects. This will also reduce Edelweiss group’s own real-estate loan book. Last-mile financing helps unlock projects stuck due to a cash crunch.

The fund will be managed by Edelweiss’ Alternative Assets platform, which manages $3.6 billion in assets.

“This will directly benefit home buyers who have been waiting long for possession,” said Ramaswamy.

Based in Seoul, Meritz manages about $46.5 billion in assets.
Property consultant JLL’s data indicate a 59 per cent increase in residential housing sales in the first nine months of the calendar year compared to the same period in 2017 when the market slumped following country’s currency swap programme in November a year earlier. It points to an uptick in housing demand, a trend that is expected to continue as benign interest rates remain benign.


Property consultant JLL’s data indicate a 59 per cent increase in residential housing sales in the first nine months of the calendar year compared to the same period in 2017 when the market slumped following country’s currency swap programme in November a year earlier. It points to an uptick in housing demand, a trend that is expected to continue as benign interest rates remain benign.

While Mumbai saw sales increase 23 per cent in the first three quarters of 2019, over the same period in 2016, Pune and Hyderabad witnessed jumps of 8.3 per cent and 74 per cent, respectively.

Source: ET Bureau

(Note: The story has been published without modifications to the text. Only the headline and intro have been changed.)

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