Walton Street BlackSoil Realty Debt Fund II Receives More than 70% Commitment at First Closing
<span style="font-weight: 400;">Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF-II), with a target fund size of INR 500 crores, secured commitments of INR 360 crores for its first closing. The Fund has an additional green-shoe option of INR 250 crores. The Fund plans to invest the generate
Published -
Sep 4, 2021 3:45 AM
Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF-II), with a target fund size of INR 500 crores, secured commitments of INR 360 crores for its first closing. The Fund has an additional green-shoe option of INR 250 crores. The Fund plans to invest the generated funds into self-liquidating senior secured debt instruments, with target security cover of more than 2x, focusing on middle-income residential real estate projects across key tier I cities of Bangalore, Hyderabad, Chennai, Mumbai, Pune & Delhi/NCR. The debt fund is registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternative Investment Fund (AIF). WSBREDF-II will pursue residential structured debt investments in the key metros across India. The Fund expects to provide debt financing to middle-income residential projects in the micro markets within these key metros which are managed by prominent developers with a focus on execution and delivery. Earlier in 2018, Walton Street BlackSoil Real Estate Debt Fund I (WSBREDF-I) was launched with committed capital of ~INR 320 crores. It was fully deployed earlier this year, across 10 investments in the key metros of Bengaluru, Hyderabad, Mumbai, more than 50% of which has been returned. WSBREDF I has invested in marquee developers like Cybercity, Bollineni and Saket, amongst others. The affordable and mid-income residential segment accounted for more than half of the new launches in Q2 2021. With reduced availability of the capital for residential real estate development, the funds generated from WSBREDF-II will be deployed to provide financial assistance to developers to ensure consistent cash flow and timely completion of projects. Commenting on the first closing, Kaushik Desai, Managing Partner, Walton Street India Real Estate Advisors Pvt Ltd said, “After the successful deployment of our first real estate debt fund, the focus of our second fund is to provide financing to developers with proven track records of execution across the mid-income housing sector in our key markets driven by end-user demand, to invest in key in-fill projects with full control over cash flow and visibility on financial closure and completion. We have received a tremendous response from the prior investors in WSBREDF-I for our second fund. We are pleased to have achieved a first closing with more than 70% of the target fund size already committed.”
Tags : first News/Views MORE Debt Receives Walton Street BlackSoil Realty Fund II Commitment Closing