DMI Alternatives, an arm of DMI Finance, has invested Rs 100 crore ($14 million at current exchange rate) across residential and commercial projects of Chennai-based developer Vista Homes.
The Times of India reported today that the SUN Group, an existing financial partner of the developer, is likely to co-invest with DMI Alternatives. SUN Group, along with Vista Spaces, had created a platform worth Rs 700 crore last year.
"There has been a paradigm shift in the Indian real estate market. Buyers have become more discerning and expect world-class standards of construction, ethics and transparency. The myriad problems afflicting legacy developers provides an attractive opportunity to new entrants, who can meet the rigorous standards and high expectations of the new-age customer," Yuvaraja Singh, director, DMI Alternatives, said in the report.
"We believe the widespread stress in the market due to contraction of credit, slowdown in sales and stricter regulatory compliance have created multiple investment opportunities," said Shweta Kondur, group finance director, Vista Spaces.
In January this year, DMI Finance raised $230 million (Rs 1,600 crore) in equity capital from majority investor New Investment Solutions (NIS) to grow its lending business.
Last year, it had hit final close (https://www.vccircle.com/dmi-alternatives-raises-250-mn-for-second-real-estate-fund) of its second real estate fund at Rs 1,600 crore ($250 million).
The fund, which has a tenure of nine years, makes structured debt and equity investments in land assets as well as under-construction properties.
DMI Finance was founded in 2008 by former Citigroup executives Shivashish Chatterjee and Yuvraj Singh. The company has been in the real estate financing segment since then. In 2013, the Burman family of consumer goods maker Dabur India picked up a stake in DMI Finance.