WSB Secures INR 700 Crore for Housing Investments - A Strategic Move in Real Estate

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 across tier-I and select tier-II cities. This marks the first close of their newly launched, fourth SEBI-registered Category-II Alternative Investment Fund (AIF), with a target corpus of ₹1,000 crore, expandable by an additional ₹1,000 crore through a green shoe option.

Key Highlights of the Fund

Investment Focus

The fund will primarily target mid-income and affordable housing projects, ensuring a balanced portfolio across various stages of the development cycle. Investments will be made in structured debt forms such as non-convertible, optionally convertible, and compulsorily convertible debentures.

Secure Investments

Each investment will be fully secured by underlying collateral, including a first charge on projects, units, and hypothecation of cash flows. An escrow mechanism with cash flow control will be established for added security.

Investor Participation

The fund has attracted significant participation from a diverse range of investors, including large family offices, corporates, offshore investors, and high net-worth individuals (HNIs). There has been notable repeat investment from previous investors, reflecting strong confidence in WSB’s investment strategy and management.

Proven Track Record

WSB Real Estate Partners has a history of raising over ₹3,000 crore since 2013, investing in 58 transactions, and successfully exiting more than 75% of its invested capital. Previous funds have shown impressive results, with the last ₹700 crore fund deployed across 14 transactions, achieving an IRR of nearly 23% on three fully exited deals.

Strategic Collaborations

The fund aims to collaborate with established realty developers known for their robust execution and delivery track records. Notable partners include Puravankara Projects, Shapoorji Pallonji Real Estate, Paranjape Schemes, Prateek Group, Bollineni Group, and Jain Housing.

Steps and Strategic Approach

Initial Fundraising Successfully raised ₹700 crore, marking the first close of the fund with plans to reach a total of ₹1,000 crore, expandable through a green shoe option.

Investment Strategy

Focus on structured debt investments in mid-income and affordable housing projects. Ensure investments are secured by collateral, with mechanisms like escrow and cash flow control for added security.

Active Asset Management

Employ qualitative underwriting and proactive asset management to deliver favorable risk-adjusted returns. Build a healthy pipeline of new investments in line with the fund’s strategy.

Investor Engagement

Maintain robust investor confidence by ensuring transparency and consistent performance. Attract repeat investments from existing investors and bring in new investors through demonstrated success and reliable returns.

Collaboration with Developers

Partner with reputable developers with proven track records to ensure project success and timely delivery. Focus on urban pockets with high demand for quality housing to maximize returns.

Facts and Figures

• Fundraising: Over ₹700 crore raised; target corpus of ₹1,000 crore with an additional ₹1,000 crore green shoe option.
• Investment Tenure: Six-year term, extendable by up to two additional one-year periods.
• Investor Base: Large family offices, corporates, offshore investors, HNIs.
• Track Record: ₹3,000 crore raised since 2013, 58 transactions, 75% capital exited.
• Performance: Previous fund achieved an IRR of nearly 23% on three fully exited transactions.
• Developer Partners: Puravankara Projects, Shapoorji Pallonji Real Estate, Paranjape Schemes, Prateek Group, Bollineni Group, Jain Housing.

Conclusion

WSB Real Estate Partners' latest fundraising effort marks a significant milestone in its strategic investment journey. By focusing on mid-income and affordable housing projects, securing investments through robust collateral, and partnering with reputable developers, WSB is well-positioned to meet the growing demand for quality housing in India’s urban centers. The strong investor confidence and successful track record further solidify WSB's position as a leading player in the real estate investment landscape.