Goldstone Capital Infra Advisors

 

Real Estate
 

Goldstonecaps Realty Fund is one of the few players in Realty Industry with the objective of creating and developing International Benchmarks in the India Real Estate Industry. We have invested about 120 Million US$ in Indian real estate primarily in Navi Mumbai, NCR and Bangalore. To derisk our business model we have given more focus on Real estate sector specifically to NCR region.

The Real Estate Industry in India has been displaying steady growth. As disposable incomes continue to rise and cities steadily expand existing boundaries, the future of the Industry seems more than promising. After considerable and evaluation we found that Northern India real estate market is the fastest growing Real Estate market in India particularly Delhi & NCR, Bangalore the fund is now ready to enter the market with a different creation. We have observed that the Rates of Commercial Properties in Delhi, Gurgaon , Noida and other towns are no longer cheap, but the rates of Residential Plots in NCR particularly in IMT Manesar is cheap considering its proximity to South Delhi and its Strategic Location. We are bullish on this town as around 85% of the Corporates have office space in Gurgaon, but due to lack of Infra development, the rates in the Residential Sector have not moved up. With rates of 1 Million INR/ Square Yard in South Delhi, IMT is immensely undervalued particularly Residential Plots in area like HSIIDC and our fund would concentrate on this along with Lavassa, Navi Mumbai and Residential Sector in Bangalore Electronic City. We are optimistic that in next 10 yrs IMT Manesar would be at 3-4 lacs per sqquare yard. The problem with the Indian real Estate sector is all Tom, Dick and Harry have started working in this area and most of them are cheats. Corporate Governance is the biggest problem in this sector. Therefore we have selected IMT Manesar, Electronic city of bangalore and Navi Mumbai to be the town of future. Its better to spend more and buy establised DLFs, Ansals, Eros, Unitech etc rather than buying a project of some unknown devleopers whose service delivery is big question mark. We also feel that DLF 1  and Sushant Lok 1 would overtake south delhi rates in next 10 years. Given our credentials and deep roots in the Real Estate Industry, our vast experience in successfully executing large Commercial, Retail and Residential Projects with extensive knowledge of real estate will be extremely beneficial for the fund.

Real Estate market in India

  • Real Estate in India is fast emerging as an alternate investment class thanks to a strong and rapidly growing middle class with increasing exposure to global trends.
  • Favorable age profile with 7 million fresh graduates and 350,000 engineering and IT professionals annually.
  • Shortage of 20 million housing units coupled with increased affordability is bound to lead to buoyant demand for residential space.
  • Estimated demand of office space is 500 million sq. ft. in the next ten years. The IT/BPO industry is primarily responsible for 75 % of the estimated demand.
  • The spurt of growth has also been driven by an economy projected to grow at 8-10% per annum.
  • Increased acceptability of India as a manufacturing hub is now leading to the development of Special Economic Zones.
  • Rapid growth of the Indian IT industry as well as the aggressive Retail Boom, with the entry of global brands in the market, have contributed to the success of the Real Estate Sector.
  • The demand for Real Estate has been accompanied by increasing professionalism and ease of bank finance leading to tie-ups between banks/ housing finance companies and developers at competitive rates.
  • Relaxed FDI norms and several reforms that are in process, can only be to the benefit of the investor.
  • Creation of new asset classes with Information Technology Parks having emerged as one of the fastest growing asset classes.
  • The entry of Real Estate Venture Capital Fund is, therefore, hardly surprising. With real estate offering the optimal risk : return ratio as well as high returns across asset classes, it's time for some real investment. But it isn't quite enough to be at the right place, at the right time. It's got to be the right fund.

Advantage with us

We are well poised to benefit from the booming realty sector. We have highly experience and professional teem with good contestants in the industry & government, we can tap funds from institutions, FII’s & HNI’s and business skills, thereby ensuring sound investment & developmental strategies.

  • Know-how of local market trends.
  • Understanding of the local laws / regulations by various local, state and central authorities.
  • Relationships with leading broking houses and hence Proprietary Deal Flow.
  • Past experience in successfully executing large Commercial, Retail and Residential projects.
  • Experienced team of professionals with extensive knowledge of real estate.

Fund Philosophy

It is not often that a realty fund is able to claim a strong foundation in real estate. We are one of the few players in this industry with strength and expertise in creating and developing international landmarks.

The investing philosophies of the fund are as below:

  • Gain early-mover advantage by faster identification of deals leveraging on in-house knowledge & industry relationships.
  • Leverage relationships with developers for proprietary deal flow.
  • Maintain a well-diversified portfolio with a broad range of real estate assets across Commercial, Retail, Residential Plots. We invest in the project stage i.e Primary Stage and also invest in secondary market also across properties which have inherent value and this can be Residential Plots, Apartments, Office Space, Industrial Sheds. The key is that we have follow Bottom-Up approach and create wealth for investor.
  • Maintain well-diversified portfolio across development stage of assets to ensure appropriate risk-reward balance.
  • Partner with highly credible developers across geographies.
  • Optimally manage overall capital structure with appropriate levels of leverage for maximising returns.
  • Prepare a clear, time-bound exit strategy for every investment decision.
  • Leverage of the past development experience for effective and implementation of projects invested.