Certus Capital, an institutional real estate investment firm, will be investing ₹125 crore in an upcoming residential project in Chennai undertaken by real estate developer Casagrand through secure bonds platform Earnnest.me, the company said on May 17.
The investment of ₹125 crore by Certus Capital, is part of its vision to invest ₹1,000 crore in secured credit in the real estate sector by FY25. Recently, the company invested Rs. 130 crore in two prime commercial real estate projects in Pune, the company said.
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The investment, in the form of secured debentures, offers 15 per cent fixed return with significant principal cover through underlying cash flows, a company statement said here.
Founded by Arun MN about 19 years ago, Casagrand has delivered more than 19 million sq. ft. across more than 100 projects in cities such as Chennai, Bengaluru, Coimbatore.
“Our investment with Casagrand is aligned with our goal to create an alternative capital channel for the RE industry, while providing attractive investment opportunities for investors in real estate projects backed by developers with proven track record. At Earnnest.me, we’ll continue to offer carefully selected investment opportunities. Our larger vision is to play the role of a dominant market maker in developing real estate debt capital markets,” said Ashish Khandelia, founder, Certus Capital.
Since its inception in 2018, Certus Capital has evaluated over ₹40,000 crore of real estate credit exposure forming part of NBFCs and housing finance companies. Certus Capital has also advised foreign institutional investors on close to ₹10,000 crores of closed investments / platform commitments in real estate credit and warehousing space.
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In Feb 2022, the company launched its secured debt investing platform, Earnnest.me, anchored around real estate.
Earnnest.me has witnessed 75%+ repeat investor interest by value. The net pre-tax return on these secured, debt investment opportunities offered through Earnnest.me typically range between 14%-16%.
