28 , February , 2023
In a recent development, NAREDCO has announced to unveil the ‘FUND CITY’ on the sidelines of the upcoming NAREDCO Finance Conclave to be held at New Delhi on 3rd March. The Fund City is a consortium of Fund Houses, Banks, specialized funds, and other financial institutions. The Fund City will work in partnership with NAREDCO to address the financial requirements of the real estate sector in India.
The prime objective of the Fund City is to address the funding requirements of stalled as well as new real estate projects across all segments of real estate development in the country. The Fund City also consists of investment bankers and consultants who will analyze and assist in the processing of these stalled or new project funding.
Fund City is very similar to TV show Shark Tank, with a group of fund houses eager to invest. Developers seeking funding must apply to Fund City, and proposals will be selected by fund houses on a first-come, first-served basis. The pressure of peers will encourage quick completion of selected proposals.
Fund City's main objective is to secure funding for all stalled, stressed and new projects without any discrimination of size, geography or stage. The terms and conditions of funding will be determined by the relevant fund houses and project promoters.
NAREDCO Fund City provides new project financing through a specialized approach to support deserving real estate projects. Leveraging a network of banks and fund houses, the organization focuses on identifying projects that can create value for stakeholders such as developers, investors, and end-users. By recognizing the unique challenges faced by the real estate sector, NAREDCO Fund City offers customized solutions that cater to the specific requirements of each project, utilizing their expertise to make it happen.
NAREDCO Fund City aims to disburse funds to a significant number of projects and promoters to bring them out of the red. The Fund City also aims to rescue a significant number of home buyers, repay and close a considerable number of loans, and close indirect liabilities. The Fund City will also aim to encourage entrepreneurship in the real estate sector, ease of business, and increase the happiness quotient.” quoted, Rajan Bandelkar, President, NAREDCO.
Developers of all sizes, across all tiers of cities, will have access to Fund City. This initiative is poised to bring about a revolution in the Indian real estate market, with significant secondary and cascading positive effects.
Getting funds from Fund City will be a simple process, with just a single-sheet application needed to express interest from the fund houses. Within 7 days, funds will provide their expression of interest, and once promoters have completed all the necessary formalities, the full process of allocation by the chosen fund house will typically be completed within 30 working days. NAREDCO Fund City has a committed group of banks and fund houses, with more expected to join soon. The full group of fund houses will be shared after the conclave. This initiative is a win-win for all stakeholders, including bankers, builders, government, and most importantly, home buyers. NAREDCO Fund City aims to revitalize the real estate sector and contribute to the growth of the Indian economy.
