Home-grown real estate funds are stepping up investments in residential projects, but are unable to address the huge funding gap as non-banking financial companies (NBFCs) continue to lag in financing real estate projects. The NBFC liquidity crisis has opened up a financing opportunity for alternative investment funds (AIF), privately pooled investment vehicles that are incorporated in India, which are actively investing and evaluating real estate deals. Ltd, said real estate funds are the last bastion of capital for developers. “Developers are okay with slightly expensive capital now and it’s getting us better deals, with better quality developers and projects. While the top 15-20% developers can access bank debt and equity funding, there is a good 30-40% whom banks and funds won’t entertain.

Source: Mint May 07, 2019 16:30 UTC