Bonjour, new guests from small-town India
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
MA MAHABOOB, MD, Secura Investment Management
Two successful investment funds have facilitated the Kerala based Secura Investment Management (India) Pvt Ltd, the first SEBI registered and Shariah compliant venture capital fund, to come out with a third fund – Realty AIF – with a target to raise ₹200 crore.
The first scheme Secura India Real Estate fund Domestic Scheme 1 has completed with a pay back record of 18 per cent, while the second fund is in the investment stage and its tenure will be over next year.
M.A.Mahaboob, the company’s Managing Director shares with Business Line on the prospects of the fund and its potential to garner a bigger capital pool especially among institutional investors, HNI’s etc in the wake of relaxation of SEBI norms for tapping offshore investors. The primary objective of the fund is to carry out investments as permissible under SEBI regulations and raise resources to provide venture capital assistance to portfolio companies operating in the Indian real estate and allied sectors so as to generate superior risk-adjusted returns.
According to him, funds will be invested in equity modes, quasi-equity and equity related instruments, investment in a co-investment capacity with development companies and other promoters of a portfolio company etc. The minimum investment under the scheme is ₹1 crore which is to be paid in instalments in three years with a down payment of 10 per cent of the capital commitment.
We are looking at an annualised RoI of 15-20 per cent with a profit share post hurdle of 80:20 with catch up, he adds.
Edited excerpts from the interaction:
Why do you focus only on real estate funds rather than other sectors like SME?
The realty and development projects offer more liquidity and we will be able to structure planned and easy divestment in this sector. We have obtained approval from SEBI to invest in real estate sector. At the same time various VC’s are operating and investing in different sectors including SME’s.
How do you look at the prospects of the fund especially among NRI segment?
We are getting good response from various classes of investors due to the legal clearance for NRI investments. We are targeting high net worth individuals from West Asia and other parts of the country.
Why do you prefer Sharia compliant and what would be its benefits? Does it appeal to non-Muslim investors?
There is a vast majority of people, who are interested in Shariah compiled products due to ethical reasons and this investor class has not been properly addressed. We intend to tap this opportunity. The product has potential of higher returns and Secura has distributed 18 per cent returns per annum for the previous fund. This makes the newly launched fund suitable for all class of investors.
How is the prospect of real estate market in your investing region?
The fund is focusing to invest in the southern part of the country where the real estate market has shown more resilience compared with northern and western regions over the past two-three years. As a result, the deal momentum from private equity firms and non-banking finance companies has also been healthy in the region.
South is becoming a hotbed for real estate development, more so compared to the northern and western regions, as the burgeoning IT sector and subsequent urbanising lifestyle continue to attract investments into the region. In addition, the South Indian realty market is more attractive as there is no over supply of residential/commercial units. Compared to north, the issues related to the incomplete projects are very little in south market. Also more units, be it residential, commercial or office spaces, its being consumed by end user in south.
Puneet Dhawan of Accor is brimming with ideas on ways to revive the hospitality sector
Citroen’s first vehicle sports a novel design and European interiors. It is also meant to be as comfortable as ...
The pandemic is only the tip of the iceberg that the country’s cash-poor airlines — both regional and national ...
The government is yet to specify the framework of its recently announced old vehicle scrappage policy
Here is a checklist that equips you to discern the market nuances
Sensex, Nifty 50 have witnessed sharp decline
The fund has consistently outperformed S&P BSE 100 TRI over one, three and five years
Returns are superior to immediate annuity plans, but SCSS can secure better rates for new investors sooner if ...
They are the health warriors who battled the Covid-19 pandemic on the ground, and are now the face of the ...
Creator of the world’s biggest art canvas hopes to help children in poorer countries
A book on Badri Narayan is a tribute — albeit a belated one — to an artist who did not enjoy the recognition ...
The country hasn’t had a quiet moment since the military seized power on February 1
Its name is the starting point of a brand’s journey and can make a big difference in the success sweepstakes
Sober spirits are the in thing
A peek into where ad spends went last year and where they are headed tomorrow
Can Swiggy Instamart disrupt the ecommerce groceries space, currently ruled by the Amazons and Big Baskets? ...
Three years after its inception, compliance with GST procedures remains a headache for exporters, job workers ...
Corporate social responsibility (CSR) initiatives of companies are altering the prospects for wooden toys of ...
Aequs Aerospace to create space for large-scale manufacture of toys at Koppal
And it has every reason to smile. Covid-19 has triggered a consumer shift towards branded products as ...
Please Email the Editor