February 6, 2017

Investment Philosophy for Real Estate

  • We invest primarily in residential projects. We can invest in the project from the stage of obtaining of Commencement Certificate (CC/Building Plan approval) stage and onwards. In case of Slum Development Projects (SRA) we invest only for the sale portion if the project is on Government Land, in case if project is on Private Land which can be mortgaged than once the site is vacated and plans are approved we can invest even for construction of rehab portion.
  • The funding period available is of 5 years. In case of large projects we can give higher period also. The repayment of principle amount is out of cash flow generated by project. There is no fixed EMI for principle repayment. The returns are taken in form of Coupon, Space and Fees. We dont load entire returns only on coupon so that the cash flow of developer doesn’t get stretched.
  • The developer who is seeking funding should have a decent track record of completing and delivering the residential project/s in past.
  • The developer needs to submit information as per the checklist and financial information of the project as per the format given. Both this could be downloaded by clicking here. Once we receive the complete information in our format we conduct basic evaluation and if preliminary approval is given by our committee than we sign a initial MOU with the Developer.
  • After signing of MOU we start due diligence and documentation process and if due diligence is successful than the investment could be completed in 45 working days time.

Download format: Financial Model – Real Estate

Document Checklist:  List of documents-Real Estates