Description
This is a presentation highlights various methods of funding of real estate like private equity, private placement etc.
Funding Options for Real Estate
Evolution
? ? ?
Single project model – customer advances Construction loans from HFCs Multiple entities, non-corporate bodies
Corporate Structure
? ? ?
?
? ? ?
?
? ?
DS Kulkarni Ansal DLF Unitech Parsvanath Purvankara Sobha Orbit Omaxe Emaar MGF: Case in point
Steps towards Funding
? ? ? ? ?
?
Corporatization Private Equity IPO and listing Private Placement JV structure and PPP Overseas listing
Mutual Funds
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Dedicated funds in Equity of RE companies Dedicated funds in RE Index Bonds of RE companies
Special Purpose Vehicles (SPV) Special Investment Vehicles (SIV)
? ? ? ? ?
?
?
Pooled investments, units, REIT Direct investment in property, projects Sell land stock, housing stock Lease-out property, bond-like yield Standardization of securities Dematerialization Develop secondary market
US Markets What went wrong
? ? ? ? ? ?
?
?
Sub-prime: 100% LTV, NINJA, teasers Home loan: one among many Irresponsible loan origination Opaque structure of re-packaging Credit enhancement by weak insurers Credit rating based on credit enhancement Overall lack of accountability No problems with the 40% prime
Issues
? ? ? ? ? ? ?
Corporate governance issues Computerization of land records Unification of RE laws Uniform national stamp duty Uniform national law for co-op societies Professional cadre in all aspects of RE Insurance, Pension and Co-op societies as investors
Thank You
doc_348473367.ppt
This is a presentation highlights various methods of funding of real estate like private equity, private placement etc.
Funding Options for Real Estate
Evolution
? ? ?
Single project model – customer advances Construction loans from HFCs Multiple entities, non-corporate bodies
Corporate Structure
? ? ?
?
? ? ?
?
? ?
DS Kulkarni Ansal DLF Unitech Parsvanath Purvankara Sobha Orbit Omaxe Emaar MGF: Case in point
Steps towards Funding
? ? ? ? ?
?
Corporatization Private Equity IPO and listing Private Placement JV structure and PPP Overseas listing
Mutual Funds
? ? ?
Dedicated funds in Equity of RE companies Dedicated funds in RE Index Bonds of RE companies
Special Purpose Vehicles (SPV) Special Investment Vehicles (SIV)
? ? ? ? ?
?
?
Pooled investments, units, REIT Direct investment in property, projects Sell land stock, housing stock Lease-out property, bond-like yield Standardization of securities Dematerialization Develop secondary market
US Markets What went wrong
? ? ? ? ? ?
?
?
Sub-prime: 100% LTV, NINJA, teasers Home loan: one among many Irresponsible loan origination Opaque structure of re-packaging Credit enhancement by weak insurers Credit rating based on credit enhancement Overall lack of accountability No problems with the 40% prime
Issues
? ? ? ? ? ? ?
Corporate governance issues Computerization of land records Unification of RE laws Uniform national stamp duty Uniform national law for co-op societies Professional cadre in all aspects of RE Insurance, Pension and Co-op societies as investors
Thank You
doc_348473367.ppt