Following the bounce back of the property market post the 2020 debacle, there have been a large number of new housing projects launched throughout India, mainly concentrated around the 7 metropolitan centers in the country – Mumbai Metropolitan Region (MMR), Hyderabad, Bengaluru, Pune, Chennai, Kolkata and Delhi NCR. The majority of these newly launched projects have been targeting the affordable & mid-income residential segment that offers residential solutions ranging from Rs. 30 lakhs to Rs. 1.5 crores. Witnessing this demand & growth in this sector, Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF-II) has invested Rs. 110 crores in 2 particular mid-income housing projects – one in Chennai & the other in Hyderabad.
WSBREDF-II has invested in 2 projects, namely – Project Zion, being developed in Chennai by Krishnaiah Projects which is a part of the last phase of a township project and the other project being Project Salzburg by Jain Housing & Construction which will have a total of 435 units. Project Zion is expected to be completed by 2025 & Project Salzburg by 2022. The WSBREDF-II fund has added an influx of Rs. 65 crores to Krishnaiah Projects’ ‘Zion’ venture & the remaining Rs. 45 crores have been deployed in Jain Housing Construction’s ‘Project Salzburg’.
WSBREDF-II claimed it had completed a first close of Rs. 360 crores in September and will continue to offer debt financing to projects that are a majority of mid-income residential projects being developed in the top 6-7 cities of India. Indian High Net-worth Individuals (HNIs) and family businesses have invested in the fund, which will be fully raised by December. The debt fund is registered with the Securities and Exchange Board of India (SEBI) as a Category II Alternative Investment Fund (AIF).
As part of WSBREDF-II’s plan which is focused on pursuing residential structured debt investments in developer projects that show promise in delivery & execution. The plan is to invest strategically in up to 8 more projects in Hyderabad, Delhi NCR, Mumbai Metropolitan Region (MMR), Pune, Bengaluru & Chennai. The main aim of the debt fund is to supply developers with debt support capital so that they have steady cash flow on hand to aid the completion of ongoing projects according to the scheduled timeline. Since 2013, and prior to the launch of WSBREDF-II, Walton Street India and BlackSoil have together placed over ₹1,500 crores of debt capital across fifty real estate transactions.
Project Zion, being developed in Chennai by Krishnaiah Projects is a township project which will house 1,800 families on completion – it is currently in the last stage of construction. Project Salzburg is a housing project which will enter the market at an affordable price point & is being developed by Jain Housing & Construction – a developer that has a rock-solid sales record. Each of these projects have received timely funds & had also made a large number of existing sales when they received the influx from WSBREDF-II.