NBFC crisis impacts Birla AMC Realty Fund's ability to exit 8 of 13 deals

Several of its investments are in Mumbai property market; fund is currently valued below its NAV

The Aditya Birla Sun Life Asset Management Company’s Real Estate Fund — I has cited the liquidity crisis plaguing the non-banking financial companies (NBFCs) for its inability to exit from eight of its 13 real-estate investments.

“The recent NBFC crisis has resulted in reduced liquidity in the financial system, adding further stress on the real estate sector. As a result, potential real estate buyers have turned extremely cautious, further reducing demand,” the AMC said in an investor note.

The fund is currently valued below its net asset value (NAV). The note said valuation of investments done by an independent valuer