Investment Services Group
PVR, High Street Phoenix
Lower Parel
Mumbai, India
Challenge
- Only real estate asset on PVR's balance sheet. PVR were keen to take the asset off-balance sheet and utilize the cash proceeds to expand core business
- At the same time, PVR wanted to continue operating from this flagship property
- PVR did not wanted to take huge hit on EBITDA and challenge was to ensure firm's Market Capitalization enhancement
Solution Provided
- GenReal suggested Structured Sale and Lease-back approach
- GenReal suggested that fit-outs to be packaged with the Asset to address PVR's concern of capital gains
Outcome
- PVR off-loaded the Asset, however still continuing to operate their flagship project
- PVR got upfront cash to expand their core business
- PVR's share price appreciated by more than 30% in 3 months since closure of the transaction
JM Financial
Challenge
- JM worry was increasing interest rates versus yield on the property
- JM wanted PVR to give enter into a long-term lease with an extended lock-in
- Transaction structuring regarding Asset Purchase versus Company Transfer
Solution Provided
- GenReal suggested rentals for the property to be pegged on the rate of interest at which JM is raising money
Outcome
- JM benefited from Company Transfer as they could utilize the depreciation loss on the books, debt tax-shield
- JM used this marquee asset as a seed investment to launch a new yield fund
- PVR entered into a long-term lease
ATS Triumph
Sector 104,
Gurgaon, India
Challenge
- Fund wanted to invest in a premium Group Housing Project in Delhi NCR especially Gurgaon
- Fund wanted to enter at attractive valuations and had apprehension regarding the premium that developer might charge
- Fund could not enter the deal until all approvals were in place
Solution Provided
- GenReal introduced Fund to Northern Peripheral Road and apprised them of the attractive valuations
- GenReal sourced a premium site and helped the Fund in short-listing
- GenReal then short-listed the developers based on Funds requirement and close the collaboration
- GenReal helped Fund's selected Developer to close the transaction with the Seller
Outcome
- GenReal structured a Fund sponsored Private Equity Land Transaction where in the Fund identified and selected the project first and then brought in the developer of choice.
Assotech Blith
Sector 99,
Gurgaon, India
Challenge
- Assotech wanted to enter Gurgaon residential market
- Assotech did not wanted to invest entirely in land
- Licence for the Project was in the name of the Seller
- Fund did not wanted to enter the project until Assotech were the owners
Solution Provided
- GenReal apprised Assotech of Northern Peripheral Road and the attractive valuations
- GenReal sourced a premium site
- GenReal introduced Assotech to the Seller to the close the transaction
- GenReal short-listed the Funds and closed the terms
- GenReal suggested a back-to-back deal with the Fund
Outcome
- GenReal structured a back-to-back deal with the Fund, where Assotech had to contribute only 50% of land value
Gurgaon - 99
Integrated Township,
Sector 99,
Gurgaon, India
Challenge
- QVC wanted to divest a part of township – commercial component, valued at INR 520 million
- The township was in Joint Venture with a local developer
- QVC's seeded investor wanted to exit as it was nearing its fund life of 7 years and also did not have commercial development as its core strength
Solution Provided
- GenReal introduced QVC to Ocus Group interested in buying the FSI
- GenReal negotiated with QVC Joint Venture partner on behalf of the Buyer and the Fund
Outcome
- GenReal helped QVC in exiting along with its JV Partner and sold it to Ocus Group.
