Walton Street-Blacksoil rebrands, crosses initial target for new debt fund

 Walton Street-Blacksoil rebrands, crosses initial target for new debt fund

Alternative credit platform BlackSoil, which had teamed up with the former India management team of US-based property investment firm Walton Street Capital to acquire its local real estate debt business, has raised a new fund.

The firm said that Walton Street BlackSoil Real Estate Debt Fund II (WSBREDF II) has surpassed the target corpus of Rs 500 crore and is now exercising the green shoe option of up to Rs 250 crore.

This comes a year after the firm hit the first close of the fund with commitments of Rs 360 crore.

The group on Thursday also announced its rebranding from Walton Street India to WSB Real Estate Partners.

The new vehicle raised capital from large family offices, corporate houses and offshore investors. It will use structured debt to invest in residential real estate projects serving the mid-income/affordable housing segment across select tier-I cities.

Kaushik Desai, Managing Partner of WSB Real Estate Partners, said, “With a healthy deal flow pipeline and promising underlying RE fundamentals, we are optimistic of fully deploying the capital in the next two-three quarters.”

Mohinder Pal Bansal, co-founder of Blacksoil Group, said: “Having successfully achieved our target fund size, we rebrand into a position that better captures the essence of where we are today and where we want to be in the future.”

The debt fund will invest in self-liquidating senior secured debt instruments, with a target security cover of more than two times. It is focused on middle-income residential real estate projects across tier-I cities of Bengaluru, Hyderabad, Chennai, Mumbai, Pune and Delhi-National Capital Region.

The predecessor fund, Walton Street BlackSoil Real Estate Debt Fund I, had raised Rs 320 crore. It was fully deployed last year across 10 investments.

Walton Street Capital India and BlackSoil have jointly placed more than Rs 1,750 crore of debt capital to date in projects spread across five metro cities and across 40 transactions. It has already secured 27 complete and five partial exits from this investment corpus.

WSB Real Estate Partners is jointly held by the ex-India management team of Walton Street (Kaushik Desai, Vinit Prabhugaonkar, and Vimal Jangla) and Blacksoil Group.

Vivek Sinha

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