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Vista Spaces enters into partnership with DMI Alternative Investment
The Economic Times  |  November 29, 2019

Sobia Khan Bengaluru

Vista Spaces, which develops premium real estate, has entered into a strategic partnership with DMI Alternative Investment Fund to acquire and develop commercial and residential projects in Bengaluru.


Both firms are jointly evaluating six projects to co-invest under the equity partnership. They have already signed memoranda of understanding for two of those projects.


“In the first tranche, the company will invest Rs 100 crore equity to underwrite projects as the valuations are more lucrative now. The projects are expected to be priced above Rs 80 lakh per unit,” Vista Spaces joint managing director Raghuveer Veeramachaneni said.


The money will be invested through DMI AIF, a Rs 1,600 crore fund focused on making special opportunity investments into structured debt and equity in real estate companies.


“Equity financing has become very intriguing with the advent of RERA and IBC (Real Estate Regulation and Development Act and Insolvency and Bankruptcy Code). The projected returns are looking very attractive and there is an opportunity to partner with top-tier builders,” said DMI Alternatives director Yuvraja Singh.


This is the second round of funding for Vista Spaces. In 2018, private equity firm SUN Group had entered into a pact to set up a strategic investment platform for residential and commercial real estate properties in India. The two partners owns equal stake in the SUN Vista platform with an option to onboard another investor. It plans to invest around Rs 700 crore through multiple tranches over the next five years in residential and commercial assets in southern India.


Vista Spaces has developed more than 20 projects in Bengaluru. Vista Spaces plans to spend more than Rs 300 crore for equity in commercial projects across southern India by the end of 2020. It plans to have a portfolio of 4.5 million sq ft by the end of 2020.


DMI Alternatives that has a nine-year life cycle plans to make 15-20 investments in real estate including portfolio-level investments. It has recently invested in Stellar Ventures, a Noida-based real estate developer, to develop commercial assets.