SEED TRANSACTION

RESIDENTIAL PROJECT IN MUMBAI

Investment Size

INR 50 Cr

Deal Type

Late Stage Apartment Buyout (units selected based on saleability and pace of construction)

Project Type

Slum Rehabilitation project under regulation 33(10) of the Development Control Regulations

Return*

IRFs acquisition price yields an effective discount from the current sales price of INR 14,000 psf, of which 35% - 55% is payable
immediately as per the Construction Linked Plan depending on unit in question
Minimum IRR of 16.5% (at INR 14,000); Upside until INR 16,000 shared 67:33; Upside beyond INR 16,000 shared 20:80
Exit Price: 14,000 (Current Market Price) Gross Return: 19.1%
Exit Price: 15,000 Gross Return: 24.1% / Exit Price: 16,000 Gross Return: 28.9%
*Effective realization / IRRs at different price levels may differ slightly depending on actual unit being underwritten

Tenure

Average Tenure of 2 Years

Primary Security

First and exclusive charge on the identified apartments and the escrowed cashflows from sale of the said apartments

Other Security

Additional 20% area offered as a security. The additional area may be sold if the funds returns are not met
100% share pledge, Undated Cheques, Promissory Notes, Corporate and Personal Guarantees

Control Mechanisms

Escrow of Cashflows / Right to appoint Directors

Risks

Mitigants

Sales Risk

45% of the area has been sold

Average sales velocity of ~32,500 sft in past 6 months
Established price point. Even if the price does not increase from current levels
after 2 years, investment yields a Gross IRR of 19.1%

Execution Risk

All major approvals are in place and Principal Contractor for execution is L&T
(a highly reputed Indian contracting company)
As per the Construction Linked Payment plan 90% of the payment will be collected
in the next 2 years when the RCC structure is expected to be completed

Risks and Mitigants

1.85x cash cover at the proposed exit price of INR 16,000 psf and 1.62x cover assuming no appreciation from the current levels
of INR 14,000 psf

Discounted price along additional area for price protection adequately covers repayment of interest and returns

Cashflow Sensitivity

STRICTLY CONFIDENTIAL

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SEED TRANSACTION (CONTD)

Late Stage Investment

Site Progress

STRICTLY CONFIDENTIAL

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TRANSACTION SNAPSHOT
RESIDENTIAL PROJECT IN CHENNAI
Investment Size

INR 37.5Cr

Deal Type

Late Stage Apartment Buyout (units selected based on saleability and pace of construction)

Fund shall be allotted specific apartments @ INR 13,500 psf which has been arrived by discounting the current price of
INR17,500 psf at 19% p.a. for next 1.5 years
A minimum assured return of 18.0% IRR and targeted gross returns of 26% IRR

Tenure

Average Tenure of 1.5 Years

Primary Security

First and exclusive charge on the identified apartments and the escrowed cashflows from sale of the said apartments

Additional 20% area offered as a security. The additional area may be sold if the funds minimum guaranteed returns are not
met
Undated Cheques, Promissory Notes, Corporate and Personal Guarantees

Escrow of Cashflows / Right to appoint Directors

Return*

Other Security
Control Mechanisms

Risks

Mitigants

Sales Risk

60% of the area has been sold

Average sales velocity of ~43,100 sft in past 6 months
Established price point. Even if the price does not increase from current levels
after 2 years, investment yields a Gross IRR of 21.5%

Execution Risk

All approvals are in place and RCC structure nearing completion (16th floor slab
casted of the 17th floors)
Project will be completed in next 18 months while it will be handed over for fit outs
by Sep15

Risks and Mitigants

At the prevailing price of INR 18,700 psft (All inclusive) our acquisition price of INR 13,500 psft and additional security of 20%
area provides a 1.66x asset cover

Discounted price along additional area for price protection adequately covers repayment of interest and returns

Cashflow Sensitivity

STRICTLY CONFIDENTIAL

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TRANSACTION SNAPSHOT(CONTD)
Late Stage Investment

Site Progress

STRICTLY CONFIDENTIAL

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TRANSACTION SNAPSHOT
RESIDENTIAL PROJECT IN MUMBAI
Investment Size

INR 37.5 Cr

Deal Type

Early Stage Apartment Buyout (units selected based on ticket size and sale trends)

Project Type

Slum Rehabilitation project under regulation 33(10) of the Development Control Regulations

Return*

IRFs acquisition price yields a discount of 40% from the current sales price of INR 29,100 psf
Minimum assured IRR of 18.5% and targeted gross returns of 25.7% IRR

Tenure

Average Tenure of 2.25 Years

Primary Security

First and exclusive charge on the identified apartments and the escrowed cashflows from sale of the said apartments

Other Security

100% share pledge, Undated Cheques, Promissory Notes, Corporate and Personal Guarantees

Control Mechanisms

Escrow of Cashflows / Right to appoint Directors/ Mechanism in place to sell flats independently

Risks

Mitigants

Sales Risk

Our inventory of 18 apartments is to be sold over 18 months (Avg. 1 unit a month)

20% of project inventory has been sold at average velocity of 2 units a month
Assured returns of 18.5% IRR achieved at INR 26,000 and targeted returns of
22% met at INR 28,100 (Below the current price of INR 29,100)

Execution Risk

Key approvals are in place and Principal Contractor is Leighton India

As per the Construction Linked Payment plan 95% of the payment will be collected
in the next 2 years when the RCC structure is expected to be completed

Risks and Mitigants

1.94x cover at the proposed exit price of INR 33,000 psf and 1.71x cover assuming no appreciation from the current levels of INR
29,100 psf

Our acquisition price provides adequate cover for repayment of principal and targeted returns even below the current price

Cashflow Sensitivity

STRICTLY CONFIDENTIAL

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