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 seeks opportunities to offer attractive risk-adjusted returns to its investors, through: opportunistic investing – by identifying capital voids, market and operating inefficiencies and anticipating cyclical recoveries; 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.

Key Differentiators

Pedigree

  1. Considerable experience and exposure in India
  2. Co – investing alongside its investors designed to provide alignment of interest
  3. Ability to leverage deep relationships forged over time with key real estate players
  4. Hands on development management experience providing critical insights into the challenges faced by the developers

Process

  1. Primary focus on quality of the underlying real estate and Borrower credit history
  2. Conservative underwriting with wide margin of safety for future uncertainties
  3. Diversified portfolio in most transactions
  4. Active Asset Management

Over the past decade, the Management Team has 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 housing projects where local demographics and proximities to business districts/ job centres, support strong demand for residential real estate. The investments are typically structured with strong downside protection mechanisms such as senior and/or exclusive asset mortgages, escrow account controls, cash-flow hypothecation, personal and corporate guarantees, post-dated cheques etc., while primary reliance is on the projected cash flows from each project as the source of repayment for each of the investments. The investments also seek to achieve complete financial closure on the asset to enhance its marketability/ monetization.

Other Real Estate Asset Classes

While Walton Street India’s primary focus has been residential real estate, the platform also seeks to leverage the broader skill-sets/ relationships built over the years, to selectively seek investment opportunities across other real estate asset classes in India including commercial, warehousing, senior living, student housing, etc.