Integrow Real Estate Special Situation Investment Trust

Fund Snapshot

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.

Balanced Portfolio Choices

Geography
– Healthy mix of projects across MMR & PMR
– Exposure to only established micro market

Counterparty
– Min 5 projects or 2.5 Lac sft of completed development
– Min 10 % of project cost
– Healthy track record of borrowing history & repayment

Project
– Development Potential>10,000 sqm
– Approved FSI with premium paid > 50 %
– RERA Completion in next 36-40 Months

Portfolio Positioning

Diversification Fix
– Geography <25 % in a single micro market
– Counterparty <25 % in a single developer group
– Project <15 % in a single project