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The WSB Real Estate Partners has raised over INR 700 crore through its fourth SEBI-registered Category II Alternative Investment Fund (AIF) to invest in mid-income and affordable housing projects in tier I and select tier II cities. The fund aims for a INR 1,000 crore corpus, expandable by another INR 1,000 crore. It has a six-year term, extendable by two years. Key investors include family offices, corporates, offshore investors, and HNIs. WSB has initiated two investments and has a strong pipeline. The fund focuses on structured debt, secured by collateral, with an aim to deliver favorable risk-adjusted returns.
WSB Real Estate Partners has successfully raised over INR 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. This marks the first close of their newly launched fourth SEBI-registered Category II Alternative Investment Fund (AIF), which has a targeted corpus of INR 1,000 crore, with the potential to expand by an additional INR 1,000 crore through a green shoe option. Advertisement
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.
Since its inception in 2013, WSB Real Estate Partners has raised over INR 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 INR 700 crore, reflecting robust investor confidence and support.
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 INR 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.
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