Walton Street BlackSoil fund signs off from Bollineni Group’s projects

 Walton Street BlackSoil fund signs off from Bollineni Group’s projects

Walton Street Blacksoil Real Estate Debt Fund (WSBREDF) has exited a clutch of projects with Krishnaiah Projects Pvt Ltd (KPPL), a real estate arm of Bollineni Group.

These investments were spread across multiple mid-income residential projects located in the southern metropolitan cities of Bangalore, Hyderabad and Chennai.

The real estate investment fund had cumulatively put Rs 202 crore across these projects. It did not share the value of the exit.

Vimal Jangla, Managing Partner at Walton Street India, said the southern India real estate market has recorded “enormous growth” in the past couple of years, owing to matured infrastructure and expansion of IT/ITES, manufacturing, logistics and e-commerce businesses.

“The industrial growth coupled with excellent social infrastructure has supported the growth of residential real estate even during the pandemic. The underlying projects across these multiple investments with KPPL performed well ahead of their business plans exceeding our underwriting expectations both on the sales and construction front,” he said.

Jangla said the investment firm is in discussions and evaluating multiple future investment opportunities with the Bollineni Group.

The Bollineni Group has developed 3 million square feet in the real estate sector and also has business interests in other sectors such as infrastructure, steel, hospitals and education. Founded by B Krishnaiah and B Seenaiah, the company has over 50 years of experience in the infrastructure industry.

The development comes ten months after Walton Street’s new debt fund hit its first close after raising Rs 360 crore. Launched in June 2021, the fund has a target corpus of Rs 500 crore and an additional greenshoe option of up to Rs 250 crore.

In April, the new fund invested in a project jointly run by Shapoorji Pallonji and Vakratunda Group.

BlackSoil and the former India-based management team of US real estate investment advisor Walton Street Capital had joined forces last year to acquire Walton Street India’s real estate debt business.

The India management team is led by Kaushik Desai, Vinit Prabhugaonkar and Vimal Jangla. As a result of the buyout, the debt fund is no longer affiliated with or advised by affiliates of Walton Street Capital.

Since 2013-14, and prior to the launch of WSBREDF-II, Walton Street BlackSoil group has placed more than Rs 1,750 crore of debt capital across over 40 real estate transactions and has received more than what it has invested through 29 full and five partial exits.

Vivek Sinha

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