Real estate assets are a collateral backed form of investment. We invest in high quality assets, focused on areas delivering growth potential driven by the global economy and demographic trends. This asset class offers stability and long term growth and is a great inflation hedge, a combination of passive rental income and value appreciation counters inflation. The stability of this asset classes promotes leverage of investing in more riskier asset classes such as the retail club.
The scope for diversification is numerous through avenues such as direct property investments, residential land and distressed assets, setting up funds for real estate projects, which are in the late or final stages of construction. We also occasionally pursue development opportunities with aligned partners.
We have a specialized team looking at capitalizing on the growing requirement of last-mile funding, considering that the prolonged slump in the residential segment has been aggravated by the ongoing liquidity crisis. Last-mile funding is relatively less risky, considering that such projects come with the required approvals and have already started generating sales. This liquidity crisis and reluctance of banks to refinance loans, has also increased demand for funds, given that several late-stage projects are stuck for want of capital.