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Fund Snapshot
| Fund | Integrow Real Estate Special Situation Fund | ||
| Fund Target Size | INR 500 cr+ INR 500 cr (Green Shoe Option) | ||
| Investment Manager | Integrow Asset Management Private Limited | ||
| Sponsor | INR 5 Cr | ||
| First Close | July 2022 | ||
| Third Close | 115.50 Crs: Feb 2024 | ||
| Target IRS | -22% -24 | ||
| Hurde Rate | 14% (Pre-tax) for all the units | ||
| Drowdown Schedule | 50% Upfront . Subsequent Drawdown as per deal approval | ||
| Term of the Fund | Earlier of 5 years from final close . Extendable upto 2 years | ||
| Corried interest | Catch-up till 20% (Profit share of 80:20 beyond hurdle) | ||
| Commitment Amount INR Cr | Management Fee | Set-Up Fee | Operating Expenses |
| >= 1<5 Cr | Upto 2.50% p.a. | Upto 2% | 0.5% p.a. |
| >=5 <25 Cr | Upto 2% p.a. | Upto 1% | 0.5% p.a. |
Integrow’s Investment Strategy
Integrow AMC follows ISME strategy- Identify, Secure, Monitor & Exit.
Identify
- Integrow identifies projects which are high in demand & are established
- Forecasting through & deal pricing through AI Driven app Arjava
- Proper due diligence through leading advisors & consultants
- Acting on recommendations from Investment committee
Secure
- Mortgage over entire project
- 100 % control over project cashflows & bank accounts
- Step in rights
- Punitive clauses for non-performance
- Share pledge of entity
- Promoter and Corporate guarantee of shareholders
Monitor and Exit
- Disbursement based on performance and milestones
- Sales, receivable tracking & pricing control through Arjava
- Expense and documentation management through Arjava
- Performance monitoring and compliance through Arjava
- Enhance value of project
- Priority in cashflow waterfall and exit distribution
Integrow Deal Evaluation Process
1. Approvals Package– The project to be RERA registered with approvals to commence plinth construction
2. Sales, Velocity & Pricing– Assessing the micro market sales velocity & pricing based on historical transactions & estimating the sales feasibility during the project life
3. Design Validation– Assessing the efficiency, design feasibility for the micro-market & ensuring the sales & regulatory designs are in sync
4. Developer & Ecosystem Governance– Compliance with local laws & record of all regulatory filings. Clear contractual obligation with land owners or buyers, defined milestones with service providers
Integrow Investment Checklist
Integrow enables direct investment in high-quality assets by conducting comprehensive due diligence, implementing stringent conditions, and employing real-time asset management for efficient monitoring and timely adjustments.
1) Return expectations: Mix of Coupon plus upside on Sales
2) Escrow Control: Both inflows & outflows monitored
3) Security: Complete project assets & shareholding of the developer SPV
4) Step in Rights: Intervention rights in a project to resolve business plan deviations
Asset Management through Arjava
Arjava has revolutionised real estate with precise monitoring, risk assessment & safe transactions. The advantage of Arjava are:
- Arjava gives an access to detailed insights on their dashboard
- Arjava helps to evaluate project & monitor the capabilities for better efficiency
- Arjava uses the blockchain technology for Trust & Transparency
Integrow Real Estate Special Situation Fund
Integrow is focused on debt & quasi equity investments in regions like Mumbai & MMR.
Indicative IRR
Gross IRR 22%-24%
-Fixed Coupon Payments- 10% – 14% per annum paid quarterly
-Redemption premium of instrument – 2% – 4%
Maximising Risk Adjusted Returns
Integrow ensures returns in private markets through operational excellence & maintaining strict control over processes, effectively navigating through a complex and uncertain landscape.
