360 One-backed NeoLiv raises ₹300 crore as first close of maiden fund

The maiden fundraise of NeoLiv, registered as category II AIF, attracted interest from ultra-high net worth investors and family offices across India, with roadshows conducted in major cities including Mumbai, Delhi-NCR, Kolkata, Ahmedabad, Lucknow, Kanpur, Bhavnagar, Udaipur, and Bangalore.

Backed by 360 One, NeoLiv operates as an integrated residential platform that combines a fund management business with a development arm. 

The company plans to use the funds to develop middle-income residential properties in key areas such as Mumbai MMR and Delhi NCR, as well as to explore plotted development opportunities in tier II cities. A significant portion, 50%, of the raised capital will be allocated to plotted development.

Now that some capital has been raised, NeoLiv can proceed with deploying the funds for land deals and joint ventures, Malhotra said.

“We are right now in active discussions for land deals in Lucknow, Sonipat, Khalapur, Alibaug, western suburbs in Mumbai and the Chembur belt,” said Malhotra, adding that the company was in “very advanced stages of signing” land deals.

Land parcels have already been identified in Mumbai and Delhi, and the first land deal is expected to be finalized within the next few months, Malhotra said.

NeoLiv is exploring opportunities for plotted developments in tier II cities like Sonipat, Lucknow, Panipat, Jaipur, Alibaug, and Nashik, and considering villa and low-rise projects in Mumbai and Gurgaon. 

It aims to launch 10 residential projects in the next couple of years, with a mix of six plotted and four group housing projects, primarily in Delhi-NCR and Mumbai.

Referring to the boom in the real estate sector, Malhotra said that “the market is in a very buoyant space.”

The strong sales momentum has led to inventory clearance.

“All-India residential sales for 3QFY24 stood at 301 mn sq. ft (up 26% on year, and up 16% sequentially), with 9MFY24 sales at 797 mn sq. ft (24% yoy)—this puts the sector in a good position to cross the 1 bn sq. ft-mark for full-year FY2024E,” said a report by Kotak Institutional Equities dated 5 March. Kotak analysts believe that multiple launches by key players are planned for Q4, which should support full year sales.

During Malhotra’s 12 years at Godrej Properties, sales grew 30 times. In his last six years as managing director and chief executive officer, market capitalization of the company grew six times.

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Published: 14 Mar 2024, 06:36 PM IST