SG Real Estate Fund Raises ₹450 Crore, Disburses ₹125 Crore to Revive Two Stalled Noida Projects

SG Real Estate Fund (SGRE Fund), a Noida-based Alternative Investment Fund (AIF), has raised ₹450 crore to invest in real estate projects across the National Capital Region (NCR). Of this, ₹125 crore has already been disbursed to revive two stalled housing projects in Noida. The fund is promoted and managed jointly by Nirala World, a real estate development company, and Sea Fund, a venture capital firm.

SGRE Fund is a Category II AIF registered with the Securities and Exchange Board of India (SEBI). It is structured as a scheme-based fund that intends to offer structured financial assistance to real estate developers, primarily through equity participation and debenture-linked instruments. The fund focuses on both residential and commercial projects, with a strong emphasis on reviving stuck or delayed developments.

In its first allocation scheme, the fund has earmarked ₹450 crore, out of which two payouts totaling ₹125 crore have already been made. These funds have been directed toward projects that had stalled due to financing issues, a concern that continues to affect the NCR region’s real estate landscape. According to fund officials, another round of disbursements is expected soon, with several other projects currently undergoing detailed due diligence.

“Funding has already been provided to two or three projects out of a total of four to five identified,” said Suresh Garg, Chairman and Managing Director of Nirala World and the promoter of SGRE Fund. “We remain open to supporting more projects. Several are currently being assessed for technical feasibility, land title status, economic viability, legal clearances, and outstanding dues,” he added.

In addition to the current scheme, SGRE Fund has applied for regulatory clearance to launch a second scheme, valued at ₹500 crore. This upcoming round is expected to focus more on equity participation and will further expand the fund’s asset base and project involvement.

The fund aims to provide an alternative financing option for developers who face challenges accessing traditional sources such as banks or NBFCs. It is also open to assisting promoters seeking to meet the eligibility requirements for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, particularly where initial promoter equity infusion is required.

“Any project in need of funding can apply to us,” Garg explained. “Our legal and technical teams conduct a thorough evaluation process. Projects with clear land titles, strong viability, and no pending legal disputes are eligible to be presented before our investment committee for final approval.”

The SGRE Fund plans to raise capital from third-party investors, including family offices, high-net-worth individuals (HNIs), insurance firms, pension funds, financial institutions, sovereign wealth funds, and multilateral agencies. This capital mobilisation strategy is in line with SEBI’s regulations for alternative investment funds and aims to create a well-diversified funding base.

The fund will secure returns through a combination of debenture and equity participation structures, providing both risk mitigation and return assurance. This model is particularly useful for projects in early or mid-stage development that require structured capital to resume or complete construction.

Nirala World, the real estate arm co-promoting the fund, has completed over 10 million square feet of development, primarily in residential real estate. Notable projects include Nirala Eden Park, Nirala Estate, and the ongoing Nirala Trio. The company is also planning to launch two commercial developments in Greater Noida West.

The emergence of funds like SGRE highlights a broader shift in the Indian real estate sector, where alternate investment funds are playing a key role in addressing funding gaps and enabling project completion. With increasing regulatory oversight and growing investor interest, such platforms are expected to play a more prominent role in urban housing revival across NCR and beyond.