No place for ‘seasonal developers’

Private equity funds responsible for carrying out due diligence on developers and regulating projects at different levels will now have a larger task cut out for them once RERA guidelines come into the market

Published on: Jul 30, 2016, 18:44:31 IST

Hindustan Times, New Delhi | By Vandana Ramnani

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Private equity funds responsible for carrying out due diligence on developers and regulating projects at different levels will now have a larger task cut out for them once RERA guidelines come into the market. They will have to ensure that developers comply with the RERA norms and that all additional disclosures are in place before a new project gets launched.

Private equity funds responsible for carrying out due diligence on developers and projects will now have a larger task cut out for them once RERA guidelines come in. (HT)

This will weed out seasonal developers in the market, letting serious players remain. Corporate governance required by PE funds, earlier a contractual requirement, will now be a legal requirement under RERA, says Anuranjan Mohnot, managing director, Amplus Capital Advisors Pvt Ltd.

PE funds are also getting into last mile funding projects in which buildings are 60% complete. Some developers have in the past utilised proceeds of sales to acquire new land banks and are now stuck and require funding to complete these projects. Delhi is one market where many developers have failed in executing their projects, hence many realty players from south India and west India are planning to enter the north Indian market, he says.

The recently launched Amplus Realty Fund - II focuses on early-stage equity investments in mid-sized residential real estate projects with a ticket size of Rs 20-40 crore per transaction. It is now looking to partner with premium developers in Bengaluru, Pune, Chennai, Mumbai, Ahmedabad, and Delhi-NCR.

ABOUT THE AUTHOR
Vandana Ramnani
Vandana Ramnani leads the real estate vertical at Hindustan Times Digital, bringing over two decades of journalism experience across real estate, education, human resources, and foreign affairs. She specialises in India’s real estate sector, covering residential and commercial markets in Delhi-NCR, Mumbai, and Bengaluru, with in-depth reporting on regulatory developments, urban policy, housing trends, and interviews with industry leaders. Her work has also appeared in the Hindustan Times newspaper and HT Estates. Earlier, Vandana played a key role in establishing the real estate vertical at Moneycontrol (NW18 Group), shaping its editorial direction and market coverage. She has also written extensively on international education for HT Education, tracking global study destinations, policy changes, and student mobility trends, earning the Singapore Education Award 2009 for Best Media Coverage (Print). Her reporting portfolio includes human resources and employment trends for HT ShineJobs and PowerJobs, as well as lifestyle and interior design features for HT Premium Homes. Vandana began her career with the Press Trust of India, gaining strong editorial and reporting expertise. She was also selected for a prestigious fellowship at Fondation Journalistes en Europe in Paris, where she wrote for EuroMag. One of her notable reporting assignments included covering Germany’s capital relocation from Bonn to Berlin. Outside of journalism, Vandana is a passionate traveller, constantly seeking out charming hideaways across India and the lesser-known, offbeat corners of Southeast Asia.Read More

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