The SG Real Estate Fund (SGRE Fund), a ₹2,000 crore Alternative Investment Fund (AIF) promoted by Nirala World and Sea Fund, has disbursed ₹125 crore to rejuvenate two such developments.
This initiative underscores the fund’s commitment to revitalising the real estate sector in the National Capital Region (NCR) and aligns with broader goals of sustainable urban development.The SGRE Fund, registered with the Securities and Exchange Board of India (SEBI) under Category II, focuses on providing financial assistance to real estate developers through equity participation, debentures, and loans. Its primary objective is to support projects that have encountered financial bottlenecks, thereby facilitating their completion and contributing to the region’s economic growth.Suresh Garg, Chairman and Managing Director of Nirala World, highlighted the fund’s proactive approach, stating, “Funding has already been provided to two or three projects out of a total of four to five identified.
Under the first scheme, ₹450 crore has been allocated, with ₹125 crore already disbursed to two stalled projects. We remain open to supporting more projects.” This statement reflects the fund’s strategic focus on addressing the liquidity challenges that often impede the progress of real estate developments.
The disbursed ₹125 crore has been allocated to two projects in Noida that were previously held up due to funding shortages. These developments, once completed, are expected to meet the growing demand for residential and commercial spaces in the region. The fund’s involvement not only provides the necessary capital but also instills confidence among stakeholders, including investors and homebuyers, in the viability of these projects.
Looking ahead, the SGRE Fund is poised to extend its support to additional projects. Several developments are currently undergoing due diligence, encompassing assessments of economic viability, technical feasibility, land titles, outstanding dues, and legal clearances. To bolster its capacity to fund more projects, the fund has applied for approvals worth ₹500 crore under a second scheme, which will involve equity participation.The fund’s investment strategy is particularly beneficial for developers who have struggled to secure financing from traditional banking channels or other alternative investment funds. By offering flexible funding options, the SGRE Fund aims to bridge the financial gap, enabling developers to resume construction and meet project timelines.
Nirala World, the real estate company behind the SGRE Fund, has a proven track record in the NCR region. The company has successfully delivered over 10 million square feet of residential developments, including projects like Nirala Eden Park, Nirala Estate, and the ongoing Nirala Trio. Additionally, Nirala World has recently acquired a 2.5-acre land parcel in Greater Noida for ₹175 crore to develop an 8 lakh square feet commercial project, further demonstrating its commitment to expanding its footprint in the region.The launch of the SGRE Fund marks a pivotal moment in addressing the challenges faced by the real estate sector in Noida. By focusing on stalled projects, the fund not only aims to complete these developments but also contributes to the broader objective of creating sustainable, eco-friendly, and equitable urban spaces. As the fund continues to evaluate and support additional projects, its impact on the NCR’s real estate landscape is expected to be profound, fostering growth and stability in the sector.
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