Walton Street India invests and manages with the philosophy that real estate is a commodity subject to cycles, both in terms of its underlying supply and demand fundamentals and its pricing relative to other financial assets. Through the principals’ relationships, experience and discipline, Walton Street India strives to identify opportunities that create and maximize value, while minimizing risk, through: opportunistic investing, which seeks to identify capital voids, market and operating inefficiencies and anticipated cyclical recoveries; value-added asset management, which aggressively seeks to redevelop or reposition under-managed and under-capitalized assets to appeal to a broader, institutional marketplace; and a disciplined disposition strategy, which seeks to identify an exit strategy before an investment is made and is continuously evaluated to seek an optimal and efficient result.
- Considerable experience and exposure in India
- Co – investing alongside its investors designed to provide alignment of interest
- Ability to leverage deep relationships forged over time with key real estate players
- Hands on development management experience providing critical insights into the challenges faced by the developers
- Primary focus on quality of the underlying real estate and Borrower credit history
- Conservative underwriting with wide margin of safety for future uncertainties
- Diversified portfolio in most transactions
- Active Asset Management
- Senior Secured Debt Investments
- Seek current income and short-term holding periods
- Investment in residential real estate projects
- Mid-market / affordable segment focus
Over the past decade, the members of the senior management of Walton Street India have built and cultivated strong relationships with well-established and experienced local real estate developers and other industry leaders. These relationships provide the team with access to a robust and diverse pipeline of potential real estate investment opportunities in the equity and debt spaces.
Residential Real Estate
Walton Street India seeks to invest in the debt securities of the Investee Companies engaged in the development of for-sale residential developments where local demographics support strong demand for residential real estate. These investments are have an anticipated exit through the sale of homes to end users with established incomes and are mostly backed by mortgage loans. The investments are typically structured with numerous downside protection mechanisms such as personal and corporate guarantees, post-dated cheques, senior mortgages, escrow accounts and hypothecation of receivables, below-market purchase options, etc., while primary reliance is on the projected cash flows from each project as the source of repayment for each of the investments.
Other Real Estate Asset Classes
While Walton Street India’s primary focus has been residential real estate, Walton Street’s India platform also seeks to leverage the broader Walton Street Capital skill set across other asset classes to selectively seek investment opportunities across other real estate asset classes in India including commercial, retail, hospitality, industrial & warehousing, senior living, student housing, etc.
Walton Street India provides medium-term structured finance solutions across sectors to high growth companies backed by reputed private equity/venture capital funds as well as high quality, stabilized businesses in the SME segment. Walton Street India’s flexible credit offering compliments the equity base and is designed to help companies maximize returns on equity by providing the required growth capital to rapidly scaleup and meet operational and valuation milestones.