athamus venture - picthbook-deals

7/26/2019 ATHAMUS Venture - Picthbook-Deals

1/45

ATHAMUS

AthamusVentureManagementFundsPrivateLtd.


2/45

ATHAMUS

ATHAMUS

ATHAMUS is a Bangalore based Venture Fund Manager

Provides investors exposure to proprietary real estate deals

ERF-I offers investors opportunity for true diversification within their overall

portfolios while minimizing risk

Focused on the development and implementation of Real estateprojects in strong and stable markets

Investments in ERF-I underpinned by real assets (inestors have a direct

stake in land and building assets unlike other funds)

Wholly owned development company to develop all the funded projects

Provides clients with access to investments not usually available to the

individual investor


3/45

ATHAMUS

ATHAMUS

Introduction to the Team

Investment Opportunity

Investment Strategy Highlights

Excedo Realty Fund I Detail

Current Market Scenario


4/45

ATHAMUS

ATHAMUS


5/45

ATHAMUS

ATHAMUS

Multi-industry experience

Global outlook

Impeccable credentials

Strong corporate &government background

Cross-functional expertise

Real Estate, Realty Funds, InvestmentBanking, Financial Services, Real EstateDevelopers, Hospitality & Construction

Working experience with Domestic as well as offshore funds and developers

Management team has worked together in start ups tomake them successful businesses and have more than

80 years of combined experience in the business

Management team members have been part of largedevelopers, fund like ICICI

Venture, IREO,Ascendas, Unitech Limited, Punj

Lloyd, Emmar MGF, Vatika, M3M etc.

Funds Management, Real estate management andexecution Urban Planning, Land

Acquisition, Investment Management,


6/45

ATHAMUS

ATHAMUS

Directors on the Board

Sanjeev Nangia

Mujib Mundewadi

Girish Bhagat

Management Team

Ashok Kinha

Executive Director & CEO

Ashok ChaudharyCOO & Chairman, IC

Gaurav JainExecutive Director-Finance &

Corporate Strategy

Vijay DhulerExecutive Director & CIO

Advisors/RetainedFirms

J.SAGAR/AZB/DUALegal Counsel

IL&FS Trust CompanyLimited

Trusteeship Services

HDFC BankBankers to the offer

One of the Big FourAudit Services

Computer Age Mgmt.Services Pvt. Ltd. (CAMS)

R&T Agent


7/45

ATHAMUS

ATHAMUS

G ire e sh Bha g a t

Director

Mr. Gireesh Bhagat has over three decades of experience in areas of InvestmentManagement, capital Markets, Investment Banking and Alternate Investments.

He is the Managing Director of IndiaNivesh Limited, a SEBI reigstered VCF. He has beenserving as honorary secretary to The EuroIndia Centre (EIC), a non profit body founded by

Dr. Manmohan Singh and Former Prime Minister of France to build cooperation betweenIndia and Europe. He is a member of CIIs National Committee on Real Estate & Housingand the International Advisory Council of DevistaIT SA, Spain. Gireesh worked for HSBCsGlobal Technology Centre and was the founding Managing Director of HDFC Securities.He also co-founded lIT InvesTrust a Capital Markets and Corporate Advisory firm. Before, atCitibank, he pioneered the Custody business in India. In Unit Trust of India (UTI) he wasExecutive Assistant to the Chairman and a Member of UTIs Committee of Management.Therein he launched the first ever India Fund. He has also served on Government of Indiaappointed High Powered Committee on Stock Exchange Reforms.

Mr. Bhagat holds a Masters degree in Business Economics and is a Graduate in

Economics from the University of Delhi. Mr. Bhagat is a Fellow of the Royal Institution ofChartered Surveyors (FRICS).


8/45

ATHAMUS

ATHAMUS

Mujib Mundewa d i

Director

Mr. Mundewadi has more than 16

years of experience across financial

services and private equity. He has

worked in ICICI Bank

Limited, CarVal Investors, (Private

Equity arm of Cargill, Inc.) and he

has invested USD 200 million across

real estate and structured

finance, Currently promoting Ceres

Capital & Financial Services Pvt., a

boutique investment banking

company

Sa njee v Nang ia

Director

Mr. Nangia is a visionary and serial

Entrepreneur with over 30 years of

experience in marine technology and

infrastructure consulting. He is

successfully mentoring various niche

businesses including IHD Ltd, Design

Matrix, J anus Engineering - Electrical

Design and Contracting

Company, King Network

and mCritical InfrastructureConsulting.


9/45

ATHAMUS

ATHAMUS

Asho k Kinha

CEO

Mr. Kinha has been associated with

management of funds and developers

for the last 16 years. He headed

legal, compliance and risk functionswith organizations like Azure

Capital, ICICI Venture Funds and IREO

(US based real estate fund).

Additionally, he has represented

companies like Knight & Marshall

(Singapore), Ascendas and Unitech

Limited. He has contested high valuereal estate litigations before various

courts in India.

Ga ura v Ja in

CFO

Mr. J ain is a Chartered Accountant

with 18 years of experience in

Strategic Financial

Planning, Budgetary control &

Auditing, Business transaction

processes, and systems. He has

been associated with real estate

funds ,NBFC, developers and

construction companies like

IREO, Punj Lloyd, M3M Allianz.


10/45

ATHAMUS

ATHAMUS

Ashok Cha udha ryCOO

Mr. Choudhury is a registered

architect with Council of

Architecture with over 13 years of

experience with leading

developers such as IREO, MGF

and Vatika Group. He has been

involved in land

acquisitions, project

approvals, project development

and launching.

Vijay Dhule r

CIO

Mr. Dhuler has been a successful

entrepreneur for the past 20 years.

He founded and sold a telecom

startup in the US. He has been

investing in real estate in Bangalore

and overseas for the past 10 years.

He has thorough knowledge of the

local real estate market. He holds

an MBA with a finance focus from

The Duke University in the USA.


11/45

ATHAMUS

ATHAMUS


12/45

ATHAMUS

ATHAMUS

Develop projectswithproperty

owners, primarilythrough

acquisition

and/or projectfinancing via

Special PurposeVehicles

Attractive returnsexpected with

severaladvantages of

investing in fund

over other assetclasses/directinvestment inreal estate

Residential

projects

sourced as

proprietarydeals

Greaterdiversification

of risk byinvestingacross

cities, and

property types

Purpose Benefits Focus

Launched byATHAMUS, Investment Manager

to Excedo RealtyFund-I

Promoter

Fund cannegotiate

bettercommercial

terms with land

owners

Team ofindustry experts

forsourcing, analy

zing, andstructuring

deals

Dedicatedteam forrigorous

monitoring offunded

projects

+ ++

Higher

returns than

direct

investment

in real

estate by

individuals

=


13/45

ATHAMUS

ATHAMUS

Excedo Realty Fund-IAthamus Venture

Management PrivateLimited

Investors

IL&FS Trust CompanyLimited

SPV 2

SPV 1

Investments Returns

Advisory

services

Fee +Carry

Services

Fee

Note: SPV: Spec ial Purpose Vehicle WOS: Wholly Owned Subsidiary

OperationsCost

ProjectExecution

Autus DevelopersPvt. Ltd.

SPV 4

SPV 3

WOS

ReturnsInvestments


14/45

ATHAMUS

ATHAMUS

AutusDevelopersPvt. Ltd.*

Inherent team strength toinvest in acquisition ofgreenfield projects through

procurement &consolidation

Efficient projectmanagement forbetter adherence toquality and schedule

In house capability tomanage and develop

projects in eachinvestment of ERF I

Skill & strategy tocapture market upside

by direct selling inmarket

Note: * ATHAMUS to implement appropriate controls and business rules to eliminate any potential conflict of interest


15/45

ATHAMUS

ATHAMUS

Proprietary Deals Build Exit model with focus onresidential projects

Capability to develop projectswithout developers

Customized projects for employeeassociations.

Primarily residential projectsAllows to takeout invested capital profits

before project completion.

Direct joint development deals with landowners.

Unique selling approach foraccelerated sales

Professional background of

founders

Established network from past association

and track record

ATHAMUS


16/45

ATHAMUS

ATHAMUS

Business Factor Developers Other Funds ERF - I Advantage of ATHAMUS

Stage of Investment Land buyDevelopment/construction

stageLand buy upto development

stage Returns from land buy stage

Investment Partly by Promoter Investors Investors Return on entire investment

Projects Proprietary

Invest w ith third party

developers Proprietary Return at par with developers

Development Self/ outsourced By investee developers Self No Loss of revenue

Sale & Exit Self/ outsourced Controlled by investors Self

Sale price and timing

controlled by fund

C ontrol on Investment Solely with Promoters With third party investee With investor

Investment decisions entirely

with fund

ATHAMUS


17/45

ATHAMUS

ATHAMUS

ATHAMUS


18/45

ATHAMUS

ATHAMUS

Proprietary deals at land buy stage to maximize the returns

Focus on niche segments and leverage innovativeinvestment themes to tap into real demand at prices

reflecting intrinsic value

In house capability to plan-build-develop-exit model for allfunded projects

Adopt robust investment guidelines and allocation targets fora well diversified portfolio

ATHAMUS


19/45

ATHAMUS

ATHAMUS

PunjabUttaranchal

Himachal Pradesh

UttarPradesh

Madhya Pradesh

Rajasthan

DelhiHaryana

Chandigarh

J ammuand Kashmir

Bihar

Meghalaya

Sikkim

Tripura

Manipur

Mizoram

Assam

Arunachal Pradesh

Nagaland

Tamilnadu

Andaman andNicobar Islands

Andhra

PradeshChattisgarh

OrissaJ harkhand

West Bengal

Karnataka

Goa

Maharashtra

Lakshadweep

Kerala

Dadra & Nagar Haveli

Gujarat

Daman & Diu

Pondicherry

MaharashtraMMR

NashikPune

Tamil NaduChennaiSalemCoimbatore

Growth CitiesRanchiDehradunRaipur

Andhra Pradesh

HyderabadVisakapattanamVijayawada

National Capital RegionNew DelhiGurgaonNoida

GujaratAhmedabadSuratVadodara

KarnatakaBangaloreMangaloreMysore

Kerala

KochiThirupuram

Pre identification allows access to attractive projects in more developed states withminimized operational complexity

ATHAMUS


20/45

ATHAMUS

ATHAMUS

TierII

TierIII

TierI

Residential

Retail

Commercial

land dev.

Construction

Land dev.

Construction

Investment

Tier II

(Mid-size)

Tier I

0%

20%

40%

60%

80%

100%

City type Developer

category

Property type Project stage Project type

% target allocation

Target Allocation

Well Balanced and diversified investment portfolio

ATHAMUS


21/45

ATHAMUS

ATHAMUS

Target exposure to one project limited to 25% of fund

Target maximum investment in a single developer limited to 25%

of fund

Target maximum investment in one city limited to 70% of fund

Target investment period of 5 years or less

ATHAMUS


22/45

ATHAMUS

ATHAMUS

Acquisitions under activenegotiations with land ownersand developers for at least five

deals

Tie-ups being executed withconst. cos., architects, regional

project mgmt.cos., brokers, investors

Project financing to commenceafter first closing

Market assessment being donefor projects under advanced

stages of negotiations

Excedo RealtyFund-I

Deal stage Project partners

Project evaluationProject financing plan

ATHAMUS


23/45

ATHAMUS

ATHAMUS

1.Size of the fund: Rs. 450 crores + Green Shoe option of Rs. 150

crores at the discretion of the Investment Manager

2.Fund life:6 years with option of 1 year extension at therecommendation of the Investment Manager

3.Minimum contribution: Rs. 5 crore for banks and financialinstitutions and Rs. 10 lakhs for individuals and other investors

4.Commitment period: 2 years

ATHAMUS


24/45

ATHAMUS

ATHAMUS

5.Hurdle Rate: 12% compounded return on capital (before tax)

6.Carried Interest: 20% and higher compounded return on capital(before tax and carried int.)-20% of net profits (before tax) withcatch up; 12% to 20% compounded return on capital (before taxand carried int.)- 17.5% of net profits (before tax) with catch up

7.Management fee: 2% per annum* (of committed amountduring commitment period, net invested principal for remainingtenure)

8.Indicative drawdown schedule: 100% upfront for individualinvestors below Rs. 1 Crore. For others, 20% upfront with balance in 2-4 quarterly draw downs that may not be equal

Note: *Plus applicable service tax

ATHAMUS


25/45

ATHAMUS

ATHAMUS

Quarterly investment updates

Audited annual/unaudited half yearly statements

Half yearly portfolio valuation & NAV declaration

Investor queries at any point of time

ATHAMUS


26/45

ATHAMUS

ATHAMUS

Promoted by professionals with impeccable credentials and strongexperience in real estate as well as sectors driving the growth of real

estate

Highly differentiated strategy with focus on niche marketsegments, innovative investment themes, small/mid-size

Strong network of real estate developers, property owners and othermarket intermediaries with robust pipeline of attractive proprietarydeals

Supported by leading Indian industrialists and entrepreneurs withsignificant fund commitment

Unwavering commitment to best-in-class corporate governancepractices that include independent committees, robust processes

and complete transparency to investors

ATHAMUS


27/45

ATHAMUS

ATHAMUSProfit Sharing with Investors

ATHAMUS


28/45

ATHAMUS

ATHAMUS

Fund to invest in Equity/Equity Linked Instruments (convert. debt, pref. shares) in SPVInvestment in Shares

Div id end inco m e

Div id end rec e ived b y fund isexem p t from tax section 10(34) of IT ActHowever, Company distributing dividends is liable to dividend distribution tax @ 16.60875%*

Pro fit from sa le/ tra nsfer of sha re s

If considered as capital gains, Ca p ita l G a ins = sa le c o nsid e ra t io n c o st o f a c q uisit io n e xp e nse s inc urre d in c o nne c t io n w ith suc h tra nsfer

If considered as business income, Ne t Inc om e ta xa b le @ 33.2175%*. Management fees could

constitute an allowable expense in this case.In computation of business income, Securities Transaction Tax (STT) would be allowed as anexpense.

Capital gainsLong-term Capital Gains Short-term Capital gains

Holding period Tax rate* Holding period Tax rate*Listed shares(where STT paid)

More than 12mths

Exempt u/s10(38)**

12 mths or less 16.60875%

Unlisted shares (orSTT not paid)

More than 12mths

22.145% withindex. benefits

12 mths or less 33.2175%***

Note: *Tax rate includes surcharge at 7.5% and education cess at 3% of tax amount; **11.0725% tax rate applicablewithout indexation benefits if shares not subject to STT; ***Max. tax rate assumed

ATHAMUS


29/45

ATHAMUS

ATHAMUS

Investment in Debentures

Intere st inc om e

In tere st re c e ive d b y fund is taxable @ 33.2175%*

Premium receivable on redemption of debentures could be considered interest income Pro fi t from sa le/ tra nsfe r of Deb enture s

If considered as capital gains, Ca p ita l G a ins = sa le c o nsid e ra t io n c o st o f a c q uisit io n e xp e nse s inc urre d in c o nne c t io n w ith suc h tra nsfer

If considered as business income, Ne t Inc om e ta xa b le @ 33.2175%*. Management fees could

constitute an allowable expense in this case.

Capital gainsLong-term Capital Gains Short-term Capital gains

Holding period Tax rate* Holding period Tax rate*

Listed Debentures More than 12

mths

11.0725%*** 12 mths or less 33.2175%**

Unlisted debentures More than 36mths

22.145% withindex. benefits

36 mths or less 33.2175%**

Note: *Tax rate includes surcharge at 7.5% and education cess at 3% of tax amount; **Max. tax rate assumed; ***Incase of listed debentures, it is possible to take a view that concessional tax rate of 11.0725% (without indexation) per

proviso to section 112 should be available [reliance could be placed on the dec ision of Authority for Advance Rulingsin case of McLeod Russel India Ltd (299 ITR 79) & Timken France Sas (212 CTR 349) and Mumbai Tribunal in Alcan Inc.vs DDIT (16 SOT 8)]. However, tax authorities may seek to apply normal tax [email protected]% relying on Mumbai Tribunalsdecision in BASF Aktiengesellschaft vs DDIT (293 ITR 1).

ATHAMUS


30/45

ATHAMUS

ATHAMUS

ATHAMUS


31/45

ATHAMUS

ATHAMUS

2 2.6 2.5 2.3

9.4

13

1.1 0.71.3

-0.7

7.3

9

-2.6

-4.2-6.2 -6

5.4

7.5

0.80.2

-0.6

1.7

6.5

8.5

-10

-5

0

5

10

15

USA U

K

Germany

Japan

India

China

Real GDP growth across major economies, %

2007

2008

2009E

2010E

Source: World Economic Outlook, IMF, J uly 2009

ATHAMUS


32/45

ATHAMUS

ATHAMUS

High returns expected from real estate assets in medium/longterm.

Real estate assets have provided superior risk-adjustedreturns compared to other asset classes

Current decline in real estate valuations offers attractive entryopportunities

Companies increasingly considering Tier II/III cities to avoidhigh real estate prices, high labor cost and infrastructureissues

Cities like

Mysore, Coimbatore, Vishakhapatnam, Jaipur, Chandigarhetc. likely to see increased demand for real estate

Nasscom estimates increasing share of growth of IT/ITES sectorfrom Tier II/III cities

ATHAMUS


33/45

ATHAMUS

ATHAMUS

192180

143

1361

128

1 3 10

0%

20%

40%

60%

80%

100%

2005 2015 2025

No. of Indian HHs by inc. levels, Mn

Low inc. Mid inc. High inc.

CAGR

20052025

11%

12%

-2% 0%

20%40%

60%

80%

100%

Denm

arkU

KUSA

Germ

any

Hongk

ong

Taiwan

Singapore

Mala

ysia

Thailand

Korea

China

India

Mortgagesas % of GDP

Rising Income Low Mortgage penetration

Note: Low income: Rs.1000KSource: McKinsey; Multiple sources

India witnessing sharp rise in high/middle income household while having one of the

lowest mortgage penetration rates

ATHAMUS


34/45

ATHAMUS

ATHAMUS

Growing urbanization % of Indian population across cities

0%

10%

20%

30%

40%

50%

0

100200

300

400

500

600

700

% urban populationUrban population, Mn

Urban pop. % urban pop.

0%

5%

10%

15%

20%

25%

30%

35%

40%

% of Indian population

OthercitiesGurgaon

Noida

Hyderaba

dBangalore

Chennai

Kolkata

Note: Figures projected for 2009 onwardsSource: IMF; ABN AMRO analyst report with some adjustments

Tier II/III cities share of urban as well as overall population expected to steadily

increase overtime

ATHAMUS


35/45

ATHAMUS

ATHAMUS

Tier I

Tier ITier I

Tier II

Tier II

Tier II

Tier III Tier III

Tier III

0%

20%

40%

60%

80%

100%

FY07 FY08-10E FY11-17E

% of growth

Source: Nasscom; Other research

Tier II/III cities getting increasing attention from companies looking to expand theiroperations

ATHAMUS


36/45

ATHAMUS

ATHAMUS

0 0.2 0.4 0.6 0.8 1

Mumbai

Chandigarh

Indore, J odhpur, Kochi, Lucknow

Surat, Thiruvananthapuram, Nagpur, J aipur, V

adodara

Bhubaneshwar, Ahmedabad, Mangalore, Nas

hik, Mysore

Vijayawada, Vishakhapatnam, Coimbatore

Commercial affordability vs Mumbai

Source: J ones Lang LaSalle

ATHAMUS


37/45

ATHAMUS

ATHAMUS

Sizeofland: 300,000Sqft TermsofDeal: 100%Purchase Land

cost: 1500/Sqft

FSI: 3 FSIcost: 500/Sqft

Expectedsale

price: 4500/Sqft

ProjectDuration: 4years Salecycle: 4year

Sellablearea: 900,000

Sqft

ATHAMUS


38/45

ATHAMUS

ATHAMUS

Ver2.0fordistributors

InitialInvestment(landpurchase): 45Crores

Approvalsandstartup: 5Crores

Constructioncost: 1500/Sqft

TotalConstructioncost: 135Crores

Total

Revenue: 360

CroresExpectedIRR(pretax): 51%

ATHAMUS


39/45

ATHAMUS

ATHAMUS

InitialRequirementof2000Sitesandupto10,000

Typicalsize

of

1200Sqft

(30x40)

Pricepersite CostofLand

Extentof

Land:

50

acres

first

installment

Expectednumberofsites:1000


ATHAMUS


40/45

ATHAMUS

ATHAMUS

Initialinvestment(about60daysfromsigningLOI): 25CR

20%paymentreceived30daysaftersaledeed: 10CR

40%paymentreceivedafterapprovals: 20CR

40%paymentreceivedatpossession: 20CR

Developmentandmarketingcost: 17CR

Durationof

project:


41/45

ATHAMUS

ATHAMUS

InitialInvestment(landpurchase): 46Crores

Approvalsand

startup: 5

Crores

Constructioncost: 2000/Sqft TotalConstructioncost: 28Crores

TotalRevenue: 140

Crores

ExpectedIRR(pretax): 50%


ATHAMUS


42/45

ATHAMUS

ATHAMUS

Sizeofland: 70,000Sqft

Termsof

Deal: 50:50

JD

Landcost: 12000/Sqft FSI: 4

FSIcost: 3000/Sqft

Expectedsaleprice: 10000/Sqft ProjectDuration: 3years

Sale

cycle:


43/45

ATHAMUS

ATHAMUS

This presentation is intended only for the benefit of potential investors to whom the presentation is made or deliveredfor the purpose of considering a possible investment in the Excedo Realty Fund-I.

Any reproduction of this presentation in whole or in part, or the disclosure of its contents or the distribution of the

presentation, without the prior written consent of Athamus Venture Management Private Limited is prohibited.

The presentation is not and should not be deemed to constitute an offer to invest or a solicitation of an offer toinvest, to or from the public in general or to or from any person.

The contents of the presentation are provisional and may be subject to change. The presentation is neither aprospec tus nor an offer or invitation to apply for units of fund. The information contained herein is not exhaustive andmust be read in conjunction with the information memorandum and other documents, which would be finalised and

circulated upon receipt of registration as a venture capital fund from SEBI. Some of the information contained in thispresentation is based only on projections made by the management team.

While reasonable care has been taken to ensure that the information included herein is correc tly and fairlyrepresented, ATHAMUS, and other parties involved in the preparation hereof assume no liability for therelevance, accuracy or completeness of the contents herein.

In making an investment decision, potential investors must rely on their own examination of the fund documents and

the terms of the offering, including the merits and risks involved.

Before making an investment, each potential investor should make their independent assessment and inquiries andconsult their own advisors as to legal, business, tax and related matters concerning an investment in fund.

The fund and its portfolio companies (if any) are subject to several risk fac tors that may affect the fund performance.

ATHAMUS


44/45

ATHAMUS

ATHAMUS

OfficeAddress:

#208,

Regent

Plaza

WhitefieldMainRoad,WhitefieldBangalore560066Karnataka,India

PhoneNumber:

Office:+918043000111AshokKinha:+919591272000VijayDhuler:+91 9900108825

Website:

www.athamus.inwww.athamus.com


45/45

ATHAMUS

AthamusVentureManagementFundsPrivateLtd.

athamus venture - picthbook-deals

Documents