Edelweiss Group to raise USD 1 bn for realty platform

The Edelweiss Group on Tuesday said it is looking to raise USD 1 billion from global institutional investors over the next one year for its financing platform in a bid to complete housing projects.

The fund has been announced in a partnership between Edelweiss Alternative Asset Advisors (EAAA) and South Korean financial services conglomerate Meritz Financial Group and it has an initial outlay of USD 425 million.

The platform will house funds that will buy out existing residential real estate loans and provide requisite completion financing to good quality, commercially viable projects, Edelweiss said in a release.

The funds within the platform will be managed by Edelweiss' Alternative Asset Management business.

"The first fund of this platform is targeted to be of USD 425 million. The platform is targeting to raise USD 1 billion, primarily from similar international institutional investors, over the next 12 months," it said.

Edelweiss said it has successfully turned around several projects across major metros, ensuring project completion.

One of the key objectives of the platform is to identify and invest in commercially viable, good quality projects and help them with financing and project management skills necessary for successful completion and delivery of homes, it said further.

Edelweiss group Chairman and CEO Rashesh Shah said, "We are confident that this platform will expedite the delivery of finished homes to the Indian market, by channelling patient capital to sound projects. A thriving real estate sector is important for the economic well-being of India, especially for the jobs it can directly generate, and for the many small businesses that thrive alongside it."