Meritz Securities Co. Ltd. has committed $425 million to a housing finance platform in India as an anchor investor, in its first foray into the country’s residential real estate market.
Mumbai-based financial services firm Edelweiss Group will launch the platform in partnership with Meritz, aiming to raise as much as $1 billion over the next 12 months, according to investment banking sources on Nov. 14.
The platform will house multiple funds to buy existing mortgage loans and provide financing for the completion of residential projects, India’s financial daily Livemint reported earlier this week.
It will be managed by Edelweiss’ alternative investment arm.
Meritz is considering raising the $425 million from its affiliated companies, including Meritz Fire & Marine Insurance Co. Ltd., and pension and retirement savings funds. It will contribute part of its own capital to the vehicle.
A significant number of housing projects in India have been left unfinished because of a liquidity crunch at smaller property firms in the wake of debt defaults by non-bank lenders.
The investment, if successful, may bring other investment opportunities in India to the Seoul-based brokerage firm through Edelweiss’ various portfolios ranging from private equity to infrastructure to wealth management, the sources added.
By Hyun-Il Lee
<Edited by Yeonhee Kim>
(Photo: Getty Images Bank)