Pradhan mantri Awas Yojna
  • Subsidy benefit of 6.5% per annum for first time home buyers.
  • Beneficiary should not own a pucca house either in his\her name or in the name of any member of his\her family in any part of India.
  • Annual Income upto Rs. 6.0 lacs.
  • Disclaimer: Loans at sole discretion of ICICI Bank Ltd.
Loan Amount:
Interest Rate: %
Loan Terms: Months
   

 

Buy One for Rs.100 or buy 100 for Rs.One - Presenting the Aditya Birla Real Estate Fund



Who would you like to be???

For Those who want to be like Mr. Parker

Capitaves Presents

Aditya Birla Real Estate Fund

For People Who want to make more from less …

 

Primary Focus : Why Residential Real Estate

Amongst  the  various  investible  asset  classes  available to an investor  today, in terms of its timing and potential for significant gain, very few can  possibly  parallel  the  opportunity offered by Real Estate. Post the meltdown, realty is one of the strongest sectors in terms of recovery and is expected to sustain this growth over the long term. Despite witnessing corrections, the market continues to expand. This is visible in the spurt in prices which started in the 2nd half of 2009.
 
The fund will focus upto 75% of its corpus towards residential realty in the initial phases of its investment term

  • Residential space contributes to 80% of total demand potential in this industry
  • Potential for strong pre-sales
  • Increasing demand due to improving economic conditions, better job prospects, affordable housing. Key statistics are proof enough.
  • Safer bet vis-à-vis commercial space

 
Focus cities : The fund will primarily focus on high potential cities like Mumbai, Bangalore, Chennai, Hyderabad and Pune where there is an increasing demand for real estate.
 
Rationale for focusing on these cities
 

  • Established demand coming from locals coupled with a shift in population towards metropolitan cities
  • These cities are key beneficiaries of improving macro-economic factors like political stability, sustained growth in GDP, resilient equity markets et al.  

 
Why invest through a Fund:

  • Diversification: The fund invests across geographies and developers thereby minimizing any concentration risk.
  • Investing at land cost: The fund will invest at the land cost basis. Hence the investor gets entry as a developer
  • Information Advantage: Through the strong network of credible partners, a fund tends to enjoy an information advantage which is limited in the case of an individual
  • Preferential pricing: A fund does enjoy preferential pricing which is not available to individual investors

 
Head - Fund Management Team:Mr. Shashi Kumar

  • Founder member of India REIT as CIO (Ajay Piramal group sponsored real estate fund)
  • Spearheaded real estate and related businesses at Shoppers Stop and Landmark
  • Funds Managed – Domestic (Rs. 1,000 crs); Offshore (US $500 mn)
  • Successful completion of an investment cycle i.e. Fund Raising, Deployment and Exit
  • Rich experience of over 10 yrs in Indian realty and related businesses
Hurdle rate for profit sharing: The hurdle rate is 10% and the profit sharing is 80:20 with catch up.
Tenure: The Fund shall have an initial term of 6 years commencing from the date of the Initial Closing; provided that, such term may be extended by the Trustee by 2 (two) additional one year periods, as may be recommended by the Investment Manager.
 
Distribution of proceeds: Example for a 1 yr horizon where capital commitment is 100 and fund realization 200
 

First Payout 100% of paid up Capital Commitments 100
Second Payout 100% of Hurdle @ 10% 10
Third Payout Catch up to Investment Manager 2.5
Final Payout 80% to Investor 70
Final Payout 20% to Investment Manager 17.5
TOTAL 200


 
Indicative drawdown for investment: 20% of committed amount now and balance over a period of 3 yrs. For an investment of Rs. 25 lacs, only Rs. 5 lacs to be paid now.

Risk mitigation strategy that the fund proposes to follow: -  

Generally, the fund will endeavor to enter at the stage of cost of land thereby downsizing the risk exposure to its investments.  The fund will also endeavor to hold a majority stake in the Investee companies to have adequate control on the operations of the investee company.  Other than having a seat on the Board of Directors of the company, the fund will also have cheque signing rights, Tag & Drag options, affirmative rights etc.  During the tenure of the project/s, the fund will continually monitor and review the progress and if so needed intervene to provide course correction measures.  As for returns from the Investee companies, the fund will generally have preferred rights on the returns too.

 

For more details please mail us on :  wealth@sunshinefinmart.com