WSB Real Estate's Fourth AIF Attracts ₹700 Crore for Affordable Housing Investments
WSB Real Estate Partners has successfully raised over ₹700 crore through its real estate debt fund to invest in mid-income and affordable housing projects in tier I and select tier II cities in India.
Wsb Real Estate PartnersAffordable HousingReal Estate InvestmentAlternative Investment FundIndiaReal EstateAug 06, 2024
The fund, known as WSB Real Estate Debt Fund III, has a six-year term from its initial closing date, with the possibility of extending it by two one-year periods. The fundraising effort saw active participation from various investors, including large family offices, corporates, offshore investors, and high-net-worth individuals (HNIs).
Kaushik Desai, Managing Partner of WSB, highlighted the trust and confidence shown by repeat investors who had previously invested in earlier funds. Desai attributed this confidence to WSB's qualitative underwriting and active asset management, aiming to provide favorable risk-adjusted returns to their investors. He noted that the fund has already initiated two investments and has a strong pipeline aligned with the platform's proactive investment strategy.
WSB Real Estate Partners was founded in 2013 and has since raised over ₹3,000 crore for real estate deployment, participating in 58 transactions and successfully exiting more than 75% of its invested capital. The current fund, along with co-investment, has garnered over ₹700 crore, reflecting robust investor confidence and support.
WSB Real Estate Partners is a real estate investment firm that focuses on providing funding for mid-income and affordable housing projects in India. The firm is committed to addressing the housing needs in India while delivering strong returns to its investors through strategic investments and robust risk management.
The fund's strategy includes collaborating with established realty developers known for their execution and delivery capabilities. Investments will be diversified across various stages of the development cycle to ensure prudent risk management and maximize investor returns. This approach aligns with the growing demand for quality housing in urban areas across India.
The primary focus of the new fund will be on investing in structured debt for mid-income and affordable housing projects through various instruments such as non-convertible, optionally convertible, and compulsorily convertible debentures. These investments will be fully secured by underlying collateral, with the fund seeking the first charge on projects, units, and hypothecation of cash flows. Additionally, an escrow mechanism will be established for cash flow control to ensure security.
WSB's previous fund, worth ₹700 crore, was deployed across 14 transactions. Of these, three have been fully exited with an Internal Rate of Return (IRR) of nearly 23%, and four transactions have been partially exited. The fund has partnered with prominent developers including Puravankara Projects, Shapoorji Pallonji Real Estate, Paranjape Schemes, Prateek Group, Bollineni Group, and Jain Housing.
Overall, WSB Real Estate Partners continues to demonstrate its commitment to addressing the housing needs in India while delivering strong returns to its investors through strategic investments and robust risk management.
Frequently Asked Questions
What is the targeted corpus of WSB Real Estate Partners' fourth AIF?
The targeted corpus of WSB Real Estate Partners' fourth AIF is ₹1,000 crore, with the potential to expand by an additional ₹1,000 crore through a green shoe option.
What is the focus of WSB Real Estate Partners' new fund?
The primary focus of the new fund will be on investing in structured debt for mid-income and affordable housing projects through various instruments such as non-convertible, optionally convertible, and compulsorily convertible debentures.
Who are the prominent developers that WSB Real Estate Partners has partnered with?
WSB Real Estate Partners has partnered with prominent developers including Puravankara Projects, Shapoorji Pallonji Real Estate, Paranjape Schemes, Prateek Group, Bollineni Group, and Jain Housing.
What is the Internal Rate of Return (IRR) of WSB Real Estate Partners' previous fund?
The IRR of WSB Real Estate Partners' previous fund is nearly 23%.
How many transactions has WSB Real Estate Partners participated in since its inception?
WSB Real Estate Partners has participated in 58 transactions since its inception in 2013.
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