Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF II) announced on Thursday an investment of Rs 165 crore in Sowparnika Homes Pvt. Limited (Sowparnika Projects).
The project will cater to the mid-income and affordable segment with an average ticket size of Rs 50 lakhs and is located close to key employment centres and IT Hubs such as Sarjapur Road, Whitefield, and Old Madras Road in Bengaluru.
Apart from Karnataka, Sowparnika Projects has a presence in Kerala and Tamil Nadu. The company has also been working with the govt under the Pradhan Mantri Awas Yojana (PMAY-HFA).
“This funding shall facilitate the delivery of over 2,750 homes in the above category. Sowparnika has developed in-house competencies with the intent of offering a value proposition for its end product at a competitive price to its customers and that differentiates them from the rest of the competition,” said WSB Partners' managing partner Vimal Jangla, on behalf of Wsbredf II.
Wsbredf II has crossed its target fund size of Rs 500 crore and stepped into the greenshoe option. With this investment, two-thirds of the target fund size has already been committed across seven investments, the firm said in a statement.
In April, the fund invested Rs 75 crore ($10 million) in Vakratunda Buildcon Pvt. Ltd (VBPL), a joint venture (JV) between Shapoorji Pallonji Group and Vakratunda Group. VBPL will use the funds for its ‘BKC 28’ project located in Mumbai’s Bandra East.
Last year, Wsbredf II closed two transactions and deployed Rs 110 crore ($14.8 million) via debt in two housing projects in Chennai and Hyderabad. The fund deployed Rs 65 crore in Krishnaiah Projects Pvt. Ltd’s project Zion in Chennai and Rs 45 crore in Jain Housing Constructions Ltd’s Salzburg in Hyderabad. Both projects are in the mid-income housing segment.
From 2013 until the launch of Walton Street BlackSoil Real Estate Debt Fund II, Walton Street India and BlackSoil have jointly invested over Rs 1,500 crore of debt capital across fifty transactions. BlackSoil and the former India-based management team of Walton Street Capital, LLC acquired Walton Street India’s real estate debt business. The India management team is led by Kaushik Desai, Vinit Prabhugaonkar and Jangla.