Alternative Investment

WSB Real Estate Debt Fund II raises Rs 500 crore


Through their residential property debt fund, WSB Real Estate Debt Fund II, alternative investment platform WSB Real Estate Partners, and alternative credit platform BlackSoil Group have raised over Rs500 crore.


The fund will concentrate on investing in residential real estate projects that cater to the mid-income and affordable housing segments in a few Tier I cities through structured loans and seek to work with developers who have a strong track record of execution and delivery.


The fundraiser has seen active involvement from high-net-worth individuals, huge family offices, corporations, and offshore investors (HNIs). A second green shoe option of Rs250 crore is also available for the Rs500 crore fund and is currently being funded.


Walton Street India’s real estate debt business has been bought jointly by BlackSoil and the previous management team of Walton Street Capital, a US-based real estate investment firm. The organization has also changed its name from Walton Street India to WSB Real Estate Partners.


This is the first fund that WSB Real Estate Partners are raising since the acquisition, despite the fact that WSBREDF-II is their second fund. Walton Street Capital India and BlackSoil have together placed more than Rs1,500 crores of loan capital across more than 50 real estate deals since 2013, prior to the launch of WSBREDF-II.


With a target security cover of more than two times, the fund intends to invest in self-liquidating senior secured loan instruments with an emphasis on middle-income residential real estate developments in important tier I cities including Mumbai, Pune, Bangalore, Hyderabad, and Chennai.


The debt fund is listed as a category II alternative investment fund (AIF) with the Securities and Exchange Board of India (SEBI).


These investments are anticipated to meet developers’ debt capital needs and provide them with reliable cash flow so that existing projects may be completed on schedule.


The fund invested Rs75 crore in the joint venture between the Shapoorji Pallonji Group and the Vakratunda Group, Vakratunda Buildcon, as one of the transactions that have already been completed. The funding provided by WSBREDF-II will be used by the joint entity to finish the residential project that it is currently developing in Mumbai’s Bandra (East) neighborhood.


Additionally, it has invested Rs110 crores in two Krishnaiah Developments mid-income housing projects in Chennai and Hyderabad.


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