Arnya Real Estate Fund – Debt

At Arnya, they believe they can significantly enhance your portfolio with the following principles:

Real Focus: With their exclusive concentration on real estate as an asset class, they are uniquely positioned to help you capitalize on India’s real estate opportunities.

Real Independence: As an independent investment manager, they offer genuine innovation, avoid conflicts of interest, align investor-manager interests, and ensure longevity and autonomy.

Real Track Record: With over 20 years of experience, they have made 175 investments and achieved a 20%+ IRR across multiple exits.

• Established as an independent investment manager with the aim of seizing opportunities in India’s real estate market and delivering superior returns for investors.
• The founding team boasts over 100 years of combined experience in real estate investment management with leading institutions.
• The team has managed an AUM exceeding INR 10,000 Cr, consistently generating superior risk-adjusted returns without losing capital in any deal.
• Arnya Real Estate Fund – Debt is their inaugural fund, registered as a Category II Alternative Investment Fund (AIF) with SEBI, targeting a corpus of INR 1,000 Cr plus a greenshoe option of INR 1,000 Cr.
• The fund will concentrate on investment opportunities in the residential real estate sector, primarily for early-stage growth capital.

Significant Growth Expected: Residential real estate is projected to grow more than 5x between 2020 and 2030.

Capital-Intensive Nature: The residential real estate sector requires substantial upfront investments for land acquisition and project approvals.

Rising Capital Requirements: Estimates indicate that the capital needed for land acquisition in residential real estate will increase from approximately INR 0.8 Lakh Cr (USD 9 billion) in 2023 to around INR 2 Lakh Cr (USD 24 billion) by 2030.

Financing Gap: There is a significant gap between the demand for growth capital and the availability of financing from banks and NBFCs, positioning Alternative Investment Funds (AIFs) to play a crucial role in the growth of residential real estate in India.

1. Investment Manager with Proven Track Record:

– The investment manager (IM) is dedicated exclusively to real estate investment management, ensuring no conflict of interest and complete alignment with investor interests.

– The IM has a proven history, managing over INR 10,000 Cr and never losing capital.

2. Identifying the Right Opportunities:

– As a knowledge-based fund house, Arnya identifies investment opportunities with attractive entry points and favorable market conditions through deep analysis of emerging trends.

3. No Name Lending:

– Strong governance and streamlined processes for deal selection, including comprehensive due diligence (title, technical, corporate, financial, and forensic) ensure no name lending practices.

4. Investment Structure with Proper Security and Enforcement Rights:

   – Focuses on debt investments with developers who have proven track records and establish robust security structures such as mortgages on project land, share pledges, corporate guarantees (CG), and personal guarantees (PG).

5. Proactive Asset Management:

– Engages in hands-on asset management with escrow control of project cash flows and regular business plan reviews.

– Possesses the capability to manage stressed accounts and ensure complete resolution of such assets.

Advantages of Arnya Real Estate Fund- Debt:

– Independent Strategy: Offers innovative products and strategies within a bureaucracy-free environment.

– Alignment of Interest: Equity ownership by the investment manager aligns their interests with those of the investors, ensuring a focus on maximizing returns.

– Longevity & Continuity: The long-term presence of the manager ensures superior asset and risk management.

– No Conflicts of Interest: The ability to evaluate investment opportunities autonomously and independently eliminates potential conflicts of interest.