Edelweiss Alternative Asset Advisors (EAAA) has partnered with South Korea’s Meritz Financial Group to launch the first fund of its financing platform, targeted at $425 million. The platform will house funds that will buy out existing residential real estate loans and provide requisite completion financing to good quality, commercially viable projects, Edelweiss said.
The funds within the platform will be managed by Edelweiss’s Alternative Asset Management business. The platform is targeting to raise $1 billion, primarily from similar international institutional investors, over the next 12 months.
Edelweiss indicated that one of the key objectives of the platform is to identify and invest in commercially viable, good quality projects and help them with financing and project management skills.
“This will unlock value for both homebuyers and lenders and is expected to create a virtuous cycle in the real estate sector, which is the second largest employer in India,” Edelweiss said.
The firm said that this partnership with Meritz is the first with an Asian Institutional investor. In recent months, Edelweiss has also partnered with global institutional investors like CDPQ in its credit business, US-based Kora management in its investment advisory business, and Arthur J Gallagher in its insurance advisory business.