WSB Real Estate Partners Pvt. Ltd, formerly known as Walton Street BlackSoil, said Tuesday it has marked the final close of its second debt fund after tapping into the greenshoe option and raised additional capital for making co-investments.
The Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF II), launched in June 2021 with a target corpus of Rs 500 crore and a greenshoe option of about Rs 250 crore, marked its final close at about Rs 700 crore, according to Kaushik Desai, managing partner at WSB. The fund house raised about Rs 150 crore separately for co-investments.
The real estate-focused debt investor said the fund has already made 12 investments in mid-income or affordable residential projects. The firm has invested about 70% of the fund’s corpus, made two complete exits and one partial exit. The two exits fetched pre-tax returns of about 23%, according to Desai.
With about Rs 200 crore available as dry powder from this vehicle, WSB is expecting to completely deploy the fund by the end of this calendar year, Desai said.
“More than 12,000 homes were developed or delivered through our portfolio in last four-five years across more than 40 projects,” he said.
The fund has an investment tenure of about three-four years. It has so far invested in residential projects in Tier-I cities including Sowparnika Homes Pvt. Ltd in Bengaluru and Vakratunda Buildcon Pvt Ltd (VBPL), a joint venture between Shapoorji Pallonji Group and Vakratunda Group, which is developing its project BKC 28 in Mumbai.
In 2021, WSBREDF II closed two transactions and deployed Rs 110 crore via debt in two housing projects in Chennai and Hyderabad. The fund deployed Rs 65 crore in Krishnaiah Projects Pvt. Ltd’s Zion project in Chennai and Rs 45 crore in Jain Housing Constructions Ltd’s Salzburg in Hyderabad. Both projects are in the mid-income housing segment.
As for its previous fund in the same series, Walton Street BlackSoil Real Estate Debt Fund I (WSBREDF I), Desai told VCCircle that WSB was looking to completely exit the investment vehicle by the end of 2023. According to its website, WSB signed 10 deals from this fund, which was launched in 2018.
Since its launch in 2013, WSB Real Estate has committed over Rs 2,000 Crore of debt to the residential real estate space. It is present primarily in five major metros.
