Real Estate Funding
The real estate industry in India has been displaying steady growth. As disposable incomes continue to rise and cities steadily expand existing boundaries, the future of the industry seems more than promising. After considerable experience and expertise in creating opportunities at Pan India level we, at The India Estates, provide investment banking services and work with a range of financial products including debt and equity instruments to satisfy the different needs of both the developers and investors. We focus on corporate sources of funding for developers, work with them to understand what kind of deals and returns they are willing to give to their investors.
- As investment manager we strive to define feasible exit strategies at the time of investment which could include a public listing, sale to the end user, sale to a strategic buyer, buyback by promoters or liquidation of the portfolio company.
- The investment philosophy of the fund is to work actively with the management of portfolio companies to build and deliver world class real estate solutions.
- The fund’s philosophy has been to partner with mid-size real estate developers who have a proven track record in the execution of real estate projects. The Fund also continues to leverage the sponsor’s extensive network in the developer community through the investment process.
- All investment proposals are presented to the Investment Committee (IC) of the Fund which comprises of the management of the Sponsor as well as representatives of some key investors of the Fund. Investments are made only post an approval for the IC
Deal Sourcing
We primarily source our deals by leveraging on existing relationships with clients, industry relationships and accessing our group’s broad network. Following the sourcing of the deal, we conduct a pre-feasibility study and an internal discussion on the deal.
Analysis and decision making
Following the pre-feasibility study, we prepare a detailed proposal for the investment committee and obtain their approval. We conduct due diligence on all aspects of the transaction which include a thorough analysis of the past history of the developer, the development of a detailed financial model of the transaction and undertaking a study of adequate measures in risk mitigation.
Channel and structure of funding
A structured financial product is developed to satisfy the requirements of the developer as well as that of the investor. The product can be in the form of a debt/equity/quasi-equity investment and a structure which is most efficient under the considerations of law and tax is chosen. The various possible exit options are evaluated and the product is finalized. Depending on the product, we also provide the investor suitable asset management services so that they can realize maximum value from the transaction.
Investment philosophy
Our team’s rich background and experience in real estate investment management and its structuring expertise help in ensuring that its investment banking transactions are subject to the same underwriting standards as our own proprietary investment transactions and thereby generate maximum value for the investors.
We focus on the following:
- Relationships: We believe in a long term commitment rather than a short term relationship
- Knowledge: We believe in knowledge gained through primary/local sources as well through secondary sources; as well as through experience
- Patience: We believe in accumulating steady returns rather taking risks in speculative spikes
