WSB Real Estate raises Rs 700 cr for mid-income, affordable housing investments

WSB Real Estate raises Rs 700 cr for mid-income, affordable housing investments

Alternative Investment Platform WSB Real Estate Partners has raised over Rs 700 crore through its real estate debt fund, which will be used to invest in mid-income and affordable housing projects in tier-1 cities and select tier-2 Indian cities.

This is the first finale of the recently launched fourth album. SEBI Registered Category II Alternative Investment Funds (AIF) has been set up with a target corpus of Rs 1,000 crore, which can be expanded up to Rs 1,000 crore through the green shoe option.

The WSB Real Estate Debt Fund III has a duration of six years from the initial closing, with the possibility of extensions for two additional periods of one year each. The fundraising has attracted significant interest from various investors, such as large family offices, corporations, offshore investors, and high-net-worth individuals (HNIs).

“We have observed that many large investors who had invested in earlier funds are reposing their trust in us by making fresh investments in this fund. With our capability of qualitative underwriting and active asset management, we are aiming to deliver favorable risk adjusted returns to our investors,” Kaushik Desai WSB managing partner told ET.

According to him, the fund has already launched two investments and has built a healthy pipeline for new funds in line with the platform’s active investment strategy.

This is the fourth fund of WSB Real Estate Partners and the group has raised over Rs 3,000 crore for real estate investments since 2013. It has been invested in 58 transactions, rolling out over 75% of its invested capital.

With co-investments the fund has raised over Rs 700 crore, indicating strong confidence and support from investors.

The fund seeks to collaborate with established realty developers with strong execution and delivery track records. Investments will be diversified across various stages of the development cycle, ensuring prudent risk management and maximizing investor returns. This approach is strategically aligned to meet the growing demand for quality housing in urban areas across the country, Desai said.

The primary focus of the new fund will be on investing in structured debt for middle-income and affordable housing projects through non-convertible, optionally convertible, compulsorily convertible debentures, etc. These investments will be fully secured by the underlying collateral.

The fund will seek first charge on the project, units, and cash flows while investing in the project. It will set up an escrow mechanism with cash flow control for security.

WSB has deployed its previous fund of Rs 700 crore in 14 transactions, of which three are fully exited with an IRR of around 23% and four are partially exited.

The fund has so far partnered with the following developers: Puravankara Projects Shapoorji Pallonji Real Estate, Paranjape Schemes, Prateek Group, Bollineni Group, and Jain Housing.

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