Vista Spaces plans to acquire commercial and residential projects with DMI Alternative Investment.

In order to procure and develop commercial and residential projects in Bengaluru, Vista Spaces, who constructs premium real estate, has entered into a strategic partnership with DMI Alternative Investment Fund.

The firms will collectively evaluate six projects to co-invest under the equity partnership. For two of these projects, they have already signed Memoranda of Understanding.

“The company is going to invest Rs 100 Crore equity in the first tranche to finance projects because their valuations are more lucrative. The projects are estimated to cost more than Rs 80 lakh a unit,” said Raghuveer Veeramachaneni, joint managing director of Vista Spaces.

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

“The advent of RERA and IBC (Real Estate Regulation and Development Act and Insolvency and Bankruptcy Code) has made equity funding very fascinating. The expected returns look attractive, with the prospect of collaborating with leading builders,” said Yuvraja Singh, director of DMI Alternatives.

This is Vista Spaces’ second round of financing. In 2018, the private-equity group SUN Group signed an agreement creating a strategic residential and commercial real estate investment platform in India. The two partners have the same stake in the SUN Vista platform with a right to onboard another investor. Over the next five years, it plans to invest around Rs 700 crore in commercial and residential assets in South India through multiple tranches.

More than 20 projects in Bengaluru have been built by Vista Spaces. By the end of 2020, Vista Spaces plans to spend more than Rs 300 crore on commercial activities across Southern India. Also by the end of 2020, it would have a portfolio of 4.5 million sq ft.

DMI Alternatives, which has a 9-year life cycle, plans to make 15-20 real estate investments, including portfolio-level investments. It recently invested in the development of commercial assets of Stellar Ventures, a real estate developer based in Noida.