Nirala World, Sea Fund launch ₹2,000cr AIF to revive stalled RE projects

Nirala World: SGRE Fund has funded projects that are stuck due to a lack of funds and is willing to back projects toiling to get funding from banks, financial institutions, and other alternative funds.

A Strategic Move to Address Funding Gaps in Real Estate

Promoters of Noida-based real estate developer Nirala World, in collaboration with Sea Fund, have launched a new Alternative Investment Fund (AIF) worth ₹2,000 crore to support residential and commercial real estate projects across India.

SGRE Fund: Targeting Stuck Projects

The newly established SGRE Fund is registered with SEBI under Category II and is a scheme-based fund. It aims to extend financial assistance to real estate developers facing funding challenges, particularly for stalled or delayed projects. This will be done through a mix of debenture and equity investments.

The fund has already disbursed ₹125 crore in two stalled projects in Noida, and a second round of investment—valued at ₹500 crore—is in the pipeline, through an additional equity participation scheme.

Project Selection Criteria

Suresh Garg, lead promoter of SGRE Fund, outlined the process for project selection. “Any real estate developer in need of funding can apply. Our legal and technical teams evaluate feasibility, conduct due diligence, and present viable proposals to a standing committee for approval,” he said.

Only projects with clear land titles, economic viability, and no legal complications will qualify for funding.

Funding Mechanism and Investor Profile

SGRE Fund plans to secure returns through equity shares and debenture participation in the funded projects. The fund will raise capital from third-party sources, including:

• Family offices
• High net-worth individuals (HNIs)
• Insurance and pension funds
• Banks and financial institutions
• Sovereign wealth funds
• Multilateral institutions

All investments will comply with SEBI’s regulatory framework for Category II AIFs.

Reviving Confidence in the Sector

With banks and traditional lenders becoming increasingly cautious, the SGRE Fund offers a crucial alternative for realtors struggling to access capital. Its focus on resolving stuck projects could help unlock value and restore momentum in key urban real estate markets.