Investment firm Nisus Finance places a $13 million wager on a property developer in Mumbai
Nisus Finance Invests Rs 115 Crore in Kumar Vibe Properties for Urban Redevelopment Projects
Nisus Finance, a publicly listed financial services firm, has made a strategic investment of Rs 115 crore in Kumar Vibe Properties, a joint venture between Kumar Properties & Infrastructure and Vibe Realty. This investment aligns with Nisus Finance's investment philosophy, focusing on urban redevelopment projects with established cash flows, strong asset cover, and short exit timelines.
The investment was made by Nisus Finance Services Co Limited, and it targets de-risked, cashflow-positive, and execution-ready projects in prime micro markets of Mumbai and Pune. The funds raised will be used for developments in Mumbai, Pune, and the rest of Maharashtra, by Vibe Realty.
Kumar Vibe Properties' projects are backed by regulatory incentives and faster approval processes, enabling scalable and sustainable inner-city regeneration. They ensure downside protection, unlock value, and enable quicker execution for high-quality urban housing. The locations of these projects benefit from upcoming major infrastructure projects, such as Mumbai’s Coastal Road and Pune’s metro expansion, boosting connectivity and long-term demand.
Nisus Finance's partnership with Kumar Vibe Properties exemplifies their confidence in the joint venture's leadership under Gopal Sarda, founder and CEO of Vibe Realty. The investment supports financial closure and advancement of three key projects across Mumbai and Pune, setting the stage for transformative real estate developments in these strategic markets.
Looking ahead, Nisus Finance aims to increase its assets under management (AUM) to about $1 billion within the next three years. They plan to deploy capital through structured credit and special situations funds like RESO-I and its successor fund, with feeder vehicles raising hundreds of millions internationally. Additionally, they are launching a rental yield platform and continuing their offshore operations to diversify offerings and funding sources.
The successor special situations fund (SSF) - Real Estate Special Opportunities II - is expected to raise $200 million from a feeder vehicle based in Mauritius. However, the investment by Nisus Finance in Kumar Vibe Properties was not mentioned to be part of this fund or the rental yield platform.
In conclusion, Nisus Finance's investment strategy in Kumar Vibe Properties emphasizes urban redevelopment in prime locations with strong fundamentals, leveraging regulatory incentives and infrastructure growth, backed by structured credit funds designed for risk-adjusted superior returns. Their future growth aligns with scaling their investment fund and expanding their platform for structured real estate financing.
Nisus Finance's strategic investment of Rs 115 crore in Kumar Vibe Properties is focused on real-estate projects, specifically urban redevelopment with established cash flows and short exit timelines. The investment in Kumar Vibe Properties is made to support financial closure and advancement of three key real-estate projects across Mumbai and Pune, which aligns with Nisus Finance's plan to increase its assets under management (AUM) in the real-estate sector.
