STRATEGY & GUIDELINES

Strategy

  • Investing against under construction/ completed residential units at deep discounts
  • Investing in under construction residential and commercial developments to target a fixed interest coupon during construction
  • Investing at initial project stage with requisite approvals within master plan limits for developing projects relating to commercial, industrial and residential nature to give returns commensurate with risks
  • Partner with developers that have an established track record of giving exits to financial institutions / investors and of delivery with prime focus on customer satisfaction

Guidelines

  • Investments in commercial assets with requisite approvals will not exceed 40% of the corpus
  • Investments in completed assets not to exceed 25% of fund corpus
  • Each investment will be > US$ 4 Mn < US$ 25 Mn
  • Single investment to not exceed 25% of the proposed fund corpus
  • Investment in a group not to exceed 30% of the proposed fund corpus

ASSET ALLOCATION

CCommercial

  • 40% of fund
  • Offices buildings & industrial estates
  • Located within city municipal limits

INCLUDES

  • Distress assets & last mile funding
  • Fixed return backed by adequate collateral security

RResidential

  • 60% of fund
  • Group housing projects
  • Located primarily in metro cities

INCLUDES

  • Land for residential projects
  • Villas, row houses & plotted development within master plan limits

INVESTMENT PROCESS

ASSET & EXIT MANAGEMENT

FOCUSED STRATEGY TO MANAGE RISK IN INVESTMENTS

Investment Stage

Technical Evaluation

  • Development potential based on FAR/FSI & Master Plan
  • Approvals availed and to be availed & timelines for getting approval
  • Cost of construction and timelines for delivering the project basis architectural and structural design of proposed building(s)

Legal Evaluation

  • 30 years title search
  • Title evolution certificate from a reputed legal firm

Project Feasibility

  • Micro market supply & absorption trends
  • Sale price trends for a specific period
  • Product configuration and sizing trends

Project Development And Monitoring Stage

Project Monitoring

  • Cost, quality & time
  • Forecasting gaps, suggesting corrective actions and operational changes to improve returns on investments
  • Information flow during execution and monitor macro environment
  • Tenant management (if required)

Cash Monitoring

  • Escrow management
  • Vendor payments
  • Sales receivables

Investor Reporting

  • Assessing performance vs business plan
  • Valuations

Exit Stage

Exit Strategy

  • Review market conditions
  • Evaluate exit based on business plan
  • Hold – sell analysis
  • Intermediary support

Reporting

  • Investment committee for review of exit
  • Investors post investment committee consent.

Share Out

  • Manage proceeds distribution

CAPABILITY TO EXIT INVESTMENT THROUGH MULTIPLE OPTIONS

Exit to the fund will be through

  • Sale of the project by adopting
    • Innovative sales strategy
    • Time bound delivery by closely monitoring project
    • Product configuration / design that is accepted by end users
    • Economic factors including affordability
  • Buy back by developer at pre defined exit IRR that match the return expectation of the principal investors of the fund
  • Buy-out initiated by developer through institutional investors / UHNI that are ready to provide capital at lower costs, for the fund to generate returns in commensurate with principal investor expectations
  • Buy-out by REIT/ PE
  • As a final recourse, the fund to take control of the project and plan a suitable exit

Exit will be carried out only after

  • Carrying out an extensive hold – sell analysis
  • Confirmation by investment committee members

DOMESTIC FUND STRUCTURE

INTERNATIONAL FUND STRUCTURE

FUND OFFERING (DOMESTIC)

Fund Size INR 500 cr. with a green shoe option of upto INR 500 cr.
Target Investors Domestic institutional investors, ultra HNI, financial institutions, banks, HUFs, NRIs & others
Fund Life 5 (+1+1) years
Draw Down Period 36 months (+6 months extension option)
Hurdle Rate 12%
Gross Return (IRR*) 25%
One-Time Setup Fee 2%
Management Fee For commitment upto INR 10 crore - 2% p.a.
For commitment above INR 10 crore -1.75% p.a.
Performance Fee Without Catch Up For commitment upto INR 10 crore - 20%
For commitment above INR 10 crore - 17.5%
Minimum Commitment Individual - INR 1 crore
Institutional invest - INR 10 crore
Initial Contribution with Application 15% of commitment amount

FUND OFFERING (OVERSEAS)

Fund Size US$ 50 Mn.+ green shoe of upto US $ 50 Mn.
Target Investors Resident / non resident individuals of Indian origin / foreign investors / trusts / societies / PF trusts / banks / financial institution and others
Fund Life 5 years + 2 single year extensions (if required)
Draw Down Period 36 months
Hurdle Rate 12%
Gross Returns (IRR)* 25%(IRR
One-time Setup fee 2% of commitment amount
Management Fee 2% for commitment
Performance Fee Without Catch Up 20% for commitment
Minimum Commitment US$ 1,50,000
Initial contribution with Application 15% of commitment amount

KEY PARTNERS

SMC & IM+ Realty Fund

Key Sponsors - SMC GROUP CREDENTIALS

ESTABLISHED IN 1994, SMC IS A WELL DIVERSIFIED FINANCIAL SERVICES COMPANY IN INDIA, OFFERING A WIDE RANGE OF INVESTMENT PRODUCTS AND FINANCIAL SERVICES. ONE OF THE LEADING AND AWARD WINNING BROKING HOUSES IN INDIA, SMC IS BROADLY INTO BROKING, DISTRIBUTION AND ADVISORY OF FINANCIAL PRODUCT AND SERVICES HAVING STRONG PRESENCE IN INDIA AND OVERSEAS IN DUBAI, NEW YORK, ATLANTA AND ORLANDO.

SMC IN NUMBERS

SERVICES : Broking - Equity, Commodity, Currency | Wealth Management | Insurance Broking | Research I Real Estate Advisory | Mortgage Advisory | Distribution of IPOs, Mutual Funds, FDs & Bonds | Investment Banking | Financing | Institutional Broking | Clearing Services |Alternate Investment Fund | NRI & FPI Services

Key Sponsors - IM+/ REPL Credentials

IM+ Capitals Limited is a BSE listed entity having business operations since 1992. REPL acquired IM+ Capitals in 2014 and since then it has been a part of REPL Group. Rudrabhishek Enterprises Pvt. Ltd. (REPL) is an established brand in the domain of infrastructure and real estate consultancy.

SERVICES: Fund Raising and Financial Advisory | Infrastructure Services | Urban Planning | Structural Design I Geographic Information System (GIS) | Architectural Design | Services Design (MEP) | Project Management Consultancy | Sales & Marketing Advisory

Fund Team

Mr. Abhimanyu Anil Londhe

CEO & Head of Investments, SMC & IM Capitals Investment Manager LLP.

Abhimanyu leads the team of specialists at joint group SMC IM Capital for raising, deploying and providing exits to a targeted US$ 75 million SMC & IM Realty Fund (SIRF), at regular intervals. Abhimanyu has done B.E. Civil Engineering, from Chennai University in 1996. He possesses 2 decades of competencies in raising & deploying of funds as per SEBI guidelines & through NCD’s, Joint Venture Structuring; land sourcing, market analysis & feasibilities, strategizing; Legal & tax compliance; costing, designing, construction management & coordination.

Mr. Navdeep Singh Chopra

Senior Vice President-Business Development, SMC & IM Capitals Investment Manager LLP.

Navdeep leads the fund raising team at SMC & IM Capitals Investment Management LLP, He has done his Masters in Finance from Delhi. Navdeep has more than 15 years of experience in Private Wealth Management, transactions and investments. Prior to joining IM Capitals, Navdeep has worked with Citibank, Citigroup Global Markets, Yes Bank, JM Morgan Stanley, Centrum, & Scotia Bank. He has been actively advising family offices for their investments across various asset classes. Navdeep has managed wealth for over 250 familites and US $ 500mm.

Role in Fund Management

Ms. Abhilasha Shrivastava

AVP, Technical Research and Evaluation, SMC & IM Capitals Investment Manager LLP.

Abhilasha is a part of Asset Management & Research team at SMC & IM Capitals Investment Management LLP. She has done Masters in Architecture from Texas Tech University, USA in 2008 and Bachelor of Architecture from National Institute of Technology (VNIT), Nagpur in 2004. Prior to IM, she worked with Ornate Spaces, a boutique developer in Mumbai, for a 10 lac sq.ft. project at Andheri (W) and 34 acres mixed-use development near Dadar, She led a team of international consultants & contractors for design development & execution.

Role in Fund Management

Investment Committee

Mr. D.K. Aggarwal

Chairman & MD
SMC Investments and Advisors Ltd. & SMC
Capitals Limited (Category 1 Merchant Banker)

Mr. D.K. Aggarwal is a fellow member of The Institute of Chartered Accountants of India (ICAI) and has over two decades of experience in the securities market & financial services. His leadership qualities help him manage, control and supervise a large number of businesses in the capital & commodity market segments within SMC Group

Mr. Pradeep Misra

Founder & CMD (REPL)

Pradeep Misra is the founder & CMD of Rudrabhishek Enterprises Private Limited & its group companies. For over two decades, he has been handling business in real estate & infrastructure sector. Under his guidance, the company with employee strength exceeding 250, has expanded its operations pan India and overseas including Eastern Europe, South East Asia & Africa.

Mr. Abhimanyu Anil Londhe

CEO & Head of Investments, SMC & IM Capitals Investment Manager LLP.

Abhimanyu leads the team of specialists at joint group SMC and IM+ Capital for raising, deploying and providing exits to a targeted $ 75 million SMC & IM + Realty Fund (SIRF), at regular interval. Abhimanyu has done B.E. Civil Engineering from Chennai University in 1996.

SELECT INVESTOR / DISTRIBUTOR REPRESENTATIVES WITH RELEVANT EXPERIENCE IN REAL ESTATE & FINANCIAL SERVICES WILL BE PART OF INVESTMENT COMMITTEE (THE INVESTMENT COMMITTEE WILL NOT EXCEED 6 PERSONNEL INCLUDING THE THREE ABOVE MENTIONED).

ADVISORY BOARD

Mr. Satish Chandra Gupta

Ex. CMD of PNB & IOB Bank

Mr. H. D. Khunteta

Ex. CMD & Director (Finance) REC Ltd.

Mr. Shankar Agarwal

Expert Advisor, Secretary, Govt. of India (Retd.)

Mr. Saurabh Mehrotra

National Director Advisory Services,
Knight Frank

Mr. Gulam Zia

Executive Director Advisory,
Retail & Hospitality, Knight Frank

SELECT INVESTORS / DISTRIBUTORS WITH RELEVANT EXPERIENCE IN REAL ESTATE AND FINANCIAL SERVICES WILL BE PART OF THE ADVISORY BOARD.

Contact us

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Offices

SMC & IM Capitals Investment Manager LLP.
Address: 707, Gateway Plaza,
Hiranandani, Powai, Mumbai-400076
Landline No: 022 – 25704801
Email Id: irf@imcapitals.com, investors@imcapitals.com
SMC & IM Capitals Investment Manager LLP.
510, Ambadeep Building,
14 K.G Marg, New Delhi –110001
Landline No: 011 – 42838332
Email Id: irf@imcapitals.com, investors@imcapitals.com
SMC & IM Capitals Investment Manager LLP.
Address: 11/6B, Shanti Chamber
Pusa Road, New Delhi - 110005
Telphone :011-43190800
Email Id : irf@imcapitals.com, investors@imcapitals.com
Registration No. : AAG- 8181

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DISCLAIMER

This presentation has been prepared exclusively for information and discussion purposes only and is not, and does not constitute an offer to sell or a solicitation of an offer to buy Units of the proposed Category II Alternative Investment Fund (“SMC IM+ Realty Fund” or “Proposed Fund”). This Presentation does not contain any direct, indirect and/or deemed offer of any securities to the public as such or otherwise and does not constitute or form part of any offer or invitation to subscribe for, underwrite or purchase securities. A private offering of the Units of the Proposed Fund will be made pursuant to a confidential Private Placement Memorandum and the definitive Fund documents, which will be furnished to qualified investors on a confidential basis at their request for their consideration of such offering. The information contained herein is proprietary and for recipient’s internal use only and is qualified in its entirety by reference to the Private Placement Memorandum and the Fund documents. The recipient is provided the information contained herein on a confidential basis which should not be disclosed to third parties or duplicated or used for any purpose other than the purpose for which it is provided. Application/necessary filings have been made to the Securities and Exchange Board of India (SEBI) for registering the SMC IM+ Realty Fund as a Category II Alternative Investment Fund and the private placement of units in the Proposed Fund would be strictly subject to receipt of requisite SEBI approvals.

Nothing in this Presentation is intended to constitute legal, tax, securities or investment advice, or opinion regarding the appropriateness of any investment, or a solicitation for any product or service. The information herein is subject to change without notice. Prospective investors should do their own due diligence and evaluations of the information contained herein. The information contained herein does not purport to contain all of the information that may be required to evaluate the Proposed Fund. Each prospective investor should examine the underlying Fund documents including the confidential private placement memorandum and the contribution agreement and consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained therein, before making any investment decision.

Certain information, including financial statements and statistical data, contained in this presentation constitutes “forward-looking statements”. Due to various risks and uncertainties, actual events or results or the actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Except where otherwise indicated herein, the information provided herein is based on matters that exist as of the date of preparation and not as of any future date, and will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof.

The parties involved in the preparation of this presentation shall not be liable for the relevance, accuracy or completeness of the information contained herein, and disclaim any and all liability as to the information set forth herein or omissions here from, including, without limitation, any express or implied representation or warranty with respect to such information. The information including facts and figures have been derived from public sources and should be relied upon by the reader at his or her own risk.

For details refer to the Private Placement Memorandum of the Proposed Fund, which can be provided on request.