Listing IndiaREIT Real Estate Fund - Domestic and Offshore <ul><li>Chintan Patel </li></ul><ul><li>28-July-2009 </li></ul>...
Agenda <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><l...
Listing Domestic Fund Scheme I August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Domestic Investors Board of Directors Ind...
Listing Domestic Fund Scheme I <ul><li>Registered as Venture Capital Fund with SEBI </li></ul><ul><li>Closed on April 2006...
Pros and Cons of Listing August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
SEBI and BSE Norms As per SEBI VCF regulation, units of VCF can be listed after 3 years but there  are no further guidelin...
Clarification Required <ul><li>Guidelines to be followed for listing </li></ul><ul><li>Compliance guidelines </li></ul><ul...
Going Forward (cont’d) <ul><li>Discussion with SEBI :  </li></ul><ul><ul><li>Maninder Cheema , GM </li></ul></ul><ul><ul><...
<ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Secti...
Listing Offshore Fund Scheme I IndiaREIT Offshore Fund  Class B IndiaREIT Investments IndiaREIT Fund Scheme II Investee Co...
Listing Offshore Fund Scheme I <ul><li>Set up as Mauritius Company </li></ul><ul><li>Closed on December 2006  </li></ul><u...
Stock Exchanges August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Compare Listing Regulation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. *** - Data not available
AIM Regulation - Summary August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
<ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Secti...
Intermediaries AIM  <ul><li>Determining if the company is appropriate for admission </li></ul><ul><li>Managing the flotati...
Admission Process Pre – admission document (At least 10 days before admission) <ul><li>Admission document </li></ul><ul><l...
Admission Document August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Continuous Obligation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Continuous Obligation (cont’d) August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Investing Company <ul><li>Investing Company – Invests in securities, businesses or assets </li></ul><ul><li>Additional Gui...
Open Queries <ul><li>What will be the fees of the intermediaries? </li></ul><ul><li>What is Regulatory information service...
Next Steps IndiaREIT Offshore Fund  Class B Company in Tax haven Identifying tax haven country to setup company which will...
<ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Secti...
Company Setup Norms August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Taxation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Fee Structure August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
Next Steps IndiaREIT offshore Fund  Class B Company in Tax haven IndiaREIT investments INDIAREIT Fund Scheme II Investee C...
<ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Secti...
Ishaan Real Estate plc. <ul><li>Ishaan Real Estate plc. works in partnership with  K Raheja Corp.  </li></ul><ul><li>Regis...
Ishaan Real Estate plc. (cont’d) August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Source – Company reports <ul><li>Tender...
Ishaan Real Estate plc. – Share price movement Source – Company reports August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. ...
Thank You August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
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Listing Real Estate Fund V 3.8

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Identified listing regulation of Indian Stock Exchange and Offshore Stock exchanges

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  • August 16, 2009
  • August 16, 2009 Reasons for Listing Exit Option to Existing investors
  • August 16, 2009
  • August 16, 2009 Prohibition on listing No venture capital fund shall be entitled to get its units listed on any recognized stock exchange till the expiry of three years from the date of the issuance of units by the venture capital fund. As per SEBI VCF regulation, units of VCF can be listed after 3 years but there are no further guidelines given by SEBI about the listing of VCF units. BSE Norms BSE have no guidelines for listing of VCF units and no VCF units has been listed till date.
  • August 16, 2009 Reasons for Listing Exit Option to Existing investors
  • August 16, 2009
  • Overview  Portfolio value down 30%* from 30 September 2008 at £529 million (30 September 2008: £760 million, 31 March 2008: £810 million).  Underlying INR valuation of portfolio down 41%** to INR 38.6 billion as at 31 March 2009 from INR 65.1 billion as at 30 September 2008(1).  At 31 March 2009 Reported NAV per share(2) at 67.8p. Adjusted NAV per share(2) at 85.7p. (137.1p at 30 September 2008 and 151.1p at 31 March 2008).  Financing of c.£300 million (including £220 million of debt facilities) secured to fund the cost of c.£280 million for the area currently under construction.  Rent has commenced from approximately 915,000 sq. ft. with an annualised rental inflow of approximately £5 million.
  • Overview  Portfolio value down 30%* from 30 September 2008 at £529 million (30 September 2008: £760 million, 31 March 2008: £810 million).  Underlying INR valuation of portfolio down 41%** to INR 38.6 billion as at 31 March 2009 from INR 65.1 billion as at 30 September 2008(1).  At 31 March 2009 Reported NAV per share(2) at 67.8p. Adjusted NAV per share(2) at 85.7p. (137.1p at 30 September 2008 and 151.1p at 31 March 2008).  Financing of c.£300 million (including £220 million of debt facilities) secured to fund the cost of c.£280 million for the area currently under construction.  Rent has commenced from approximately 915,000 sq. ft. with an annualised rental inflow of approximately £5 million.
  • Listing Real Estate Fund V 3.8

    1. 1. Listing IndiaREIT Real Estate Fund - Domestic and Offshore <ul><li>Chintan Patel </li></ul><ul><li>28-July-2009 </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    2. 2. Agenda <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Section II (a) – Listing Regulation </li></ul></ul><ul><ul><li>Section II (b) - AIM Norms </li></ul></ul><ul><ul><li>Section II (c) - Company Setup in Tax Haven </li></ul></ul><ul><ul><li>Annexure - Case study : Ishaan Real Estate plc. </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    3. 3. Listing Domestic Fund Scheme I August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Domestic Investors Board of Directors IndiaREIT Advisory (AMC) SPV 1 SPV 3 SPV 2 IndiaREIT Fund Domestic Scheme I IL& FS (Trustee) Fund registered as Venture Capital Fund with SEBI Domestic Investors Special Purpose Vehicle is the company floated by Developer for a particular development project. The Fund buys equity stake in this SPV and get returns. Promoter Ajay Piramal Part of Controls
    4. 4. Listing Domestic Fund Scheme I <ul><li>Registered as Venture Capital Fund with SEBI </li></ul><ul><li>Closed on April 2006 </li></ul><ul><li>Total Fund Corpus – Rs. 430 Cr. </li></ul><ul><li>Ticket Size – 1 Cr. </li></ul><ul><li>No. of investors – 380 </li></ul><ul><li>Units having face value of Rs. 1,00,000 </li></ul><ul><li>Type of Shares </li></ul><ul><ul><li>Class A - Up to 75 Cr. </li></ul></ul><ul><ul><li>Class B - 75.1 to 100 Cr. </li></ul></ul><ul><ul><li>Class C - 100 Cr. and above </li></ul></ul><ul><ul><li>Class D - 100 Units – Face value of Rs. 10,000 to Investment Advisor </li></ul></ul><ul><li>Scheme Term – 7 + 2 years from Initial Closing </li></ul><ul><li>Investment Period – 3 years </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    5. 5. Pros and Cons of Listing August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    6. 6. SEBI and BSE Norms As per SEBI VCF regulation, units of VCF can be listed after 3 years but there are no further guidelines given by SEBI about the listing of VCF units. IndiaREIT Domestic Scheme –I could be the first VCF units to be listed on BSE August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    7. 7. Clarification Required <ul><li>Guidelines to be followed for listing </li></ul><ul><li>Compliance guidelines </li></ul><ul><li>Capital gain tax rates applicable to investors </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Going Forward <ul><li>Discussion with BSE : Iyer Gopalkrishnan , GM , Corporate Services </li></ul><ul><ul><li>Points discussed - </li></ul></ul><ul><ul><ul><li>Possibility for listing on BSE if SEBI provides exemption u/s 19(2)(b) </li></ul></ul></ul><ul><ul><ul><li>The Securities Contracts (Regulation) Rules, 1957 u/s19(2)(b) states that 25 % of the securities to be issued to public through advertisement </li></ul></ul></ul><ul><ul><ul><li>Suggested to have a discussion with SEBI officials </li></ul></ul></ul>
    8. 8. Going Forward (cont’d) <ul><li>Discussion with SEBI : </li></ul><ul><ul><li>Maninder Cheema , GM </li></ul></ul><ul><ul><li>Mohammad Atif Alvi , AGM </li></ul></ul><ul><ul><li>Points discussed </li></ul></ul><ul><ul><ul><li>Valuation of underlying assets should be on Quarterly basis </li></ul></ul></ul><ul><ul><ul><li>Liquidity could be issue for the securities </li></ul></ul></ul><ul><ul><li>Points Suggested </li></ul></ul><ul><ul><ul><li>To find out how Mutual Fund Closed ended scheme is listed and can we apply same regulation on VCF scheme </li></ul></ul></ul><ul><ul><ul><li>Can VCF be define under other securities which can be listed under Securities Contract Regulation ? </li></ul></ul></ul><ul><ul><ul><li>Without being defined as securities can we list VCF scheme </li></ul></ul></ul><ul><li>Research on above points and discuss again with SEBI </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    9. 9. <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Section II (a) – Listing Regulation </li></ul></ul><ul><ul><li>Section II (b) - AIM Norms </li></ul></ul><ul><ul><li>Section II (c) - Company Setup in Tax Haven </li></ul></ul><ul><ul><li>Annexure - Case study : Ishaan Real Estate plc. </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    10. 10. Listing Offshore Fund Scheme I IndiaREIT Offshore Fund Class B IndiaREIT Investments IndiaREIT Fund Scheme II Investee Companies Investee Companies August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Mauritius India Class A Class C
    11. 11. Listing Offshore Fund Scheme I <ul><li>Set up as Mauritius Company </li></ul><ul><li>Closed on December 2006 </li></ul><ul><li>Total Fund Corpus – USD 200 M </li></ul><ul><li>Ticket Size – USD 250,000 </li></ul><ul><li>Share having nominal value of USD 0.01 </li></ul><ul><li>Type of Shares </li></ul><ul><ul><li>Class A – Total commitment of USD 120 M </li></ul></ul><ul><ul><li>Class B – To Investment Manager </li></ul></ul><ul><ul><li>Class C – To Cornerstone Investor -Total commitment of </li></ul></ul><ul><ul><li>USD 40 M </li></ul></ul><ul><li>Scheme Term – 8 + 2 years from Initial Closing </li></ul><ul><li>Investment Period – 3 years </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    12. 12. Stock Exchanges August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    13. 13. Compare Listing Regulation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. *** - Data not available
    14. 14. AIM Regulation - Summary August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    15. 15. <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Section II (a) – Listing Regulation </li></ul></ul><ul><ul><li>Section II (b) - AIM Norms </li></ul></ul><ul><ul><li>Section II (c) - Company Setup in Tax Haven </li></ul></ul><ul><ul><li>Annexure - Case study : Ishaan Real Estate plc. </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    16. 16. Intermediaries AIM <ul><li>Determining if the company is appropriate for admission </li></ul><ul><li>Managing the flotation process - Preparing admission document </li></ul><ul><li>After flotation, advising the AIM Company in respect of its compliance with the AIM Rules and general corporate governance. </li></ul><ul><li>Fund raising </li></ul><ul><li>Floatation process – Drafting Admission document </li></ul><ul><li>Investment research </li></ul><ul><li>LSE maintains approved Nomad list </li></ul><ul><li>Must retain Nomad all the time </li></ul><ul><li>Member of LSE </li></ul><ul><li>Must retain Broker all the time </li></ul><ul><li>Will conduct an independent review of the </li></ul><ul><li>company's financial records and assist </li></ul><ul><li>in preparing any financial information required to be published </li></ul><ul><li>Advise on issues such as the legal aspects of preparing the company for admission </li></ul><ul><li>Undertake a legal review of the company </li></ul><ul><li>Flow of information </li></ul><ul><li>concerning the admission </li></ul><ul><li>,generate positive publicity and press interest </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    17. 17. Admission Process Pre – admission document (At least 10 days before admission) <ul><li>Admission document </li></ul><ul><li>Application form </li></ul><ul><li>Nominated Adviser’s declaration </li></ul><ul><li>(At least 3 days before admission) </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    18. 18. Admission Document August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    19. 19. Continuous Obligation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    20. 20. Continuous Obligation (cont’d) August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    21. 21. Investing Company <ul><li>Investing Company – Invests in securities, businesses or assets </li></ul><ul><li>Additional Guidelines - </li></ul><ul><ul><li>State and follow Investing Policy </li></ul></ul><ul><ul><li>Seek prior consent of shareholders for any change in investing policy </li></ul></ul><ul><ul><li>Implement investing policy within 18 months of admission </li></ul></ul><ul><ul><li>Need to raise GBP 3 M via fundraising </li></ul></ul><ul><ul><li>Disclose the details of investment manager in admission document </li></ul></ul><ul><ul><li>Company needs to disclose change in investment manager if any </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    22. 22. Open Queries <ul><li>What will be the fees of the intermediaries? </li></ul><ul><li>What is Regulatory information service provider ? </li></ul><ul><li>Need information about Admission process and time required for each task </li></ul><ul><li>Other Factors to be evaluated for Fund raising </li></ul><ul><li>Liquidity in the market </li></ul><ul><li>Investor sentiments </li></ul><ul><li>Offer size </li></ul><ul><li>Pricing </li></ul><ul><li>Share Distribution </li></ul><ul><li>Any other IPO during same time frame </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    23. 23. Next Steps IndiaREIT Offshore Fund Class B Company in Tax haven Identifying tax haven country to setup company which will be listed on AIM IndiaREIT Investments IndiaREIT Fund Scheme II Investee Companies Investee Companies August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Tax haven Mauritius India Class A Class C List Mauritius Company “IndiaREIT Offshore Fund” on AIM OR
    24. 24. <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Section II (a) – Listing Regulation </li></ul></ul><ul><ul><li>Section II (b) - AIM Norms </li></ul></ul><ul><ul><li>Section II (c) - Company Setup in Tax Haven </li></ul></ul><ul><ul><li>Annexure - Case study : Ishaan Real Estate plc. </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    25. 25. Company Setup Norms August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    26. 26. Taxation August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    27. 27. Fee Structure August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    28. 28. Next Steps IndiaREIT offshore Fund Class B Company in Tax haven IndiaREIT investments INDIAREIT Fund Scheme II Investee Companies Investee Companies Merge Mauritius company with new company so that existing shareholders can trade on AIM August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Tax haven Mauritius India Class A Class C
    29. 29. <ul><li>Section I - Listing Domestic Fund </li></ul><ul><li>Section II – Listing Offshore Fund </li></ul><ul><ul><li>Section II (a) – Listing Regulation </li></ul></ul><ul><ul><li>Section II (b) - AIM Norms </li></ul></ul><ul><ul><li>Section II (c) - Company Setup in Tax Haven </li></ul></ul><ul><ul><li>Annexure - Case study : Ishaan Real Estate plc. </li></ul></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.
    30. 30. Ishaan Real Estate plc. <ul><li>Ishaan Real Estate plc. works in partnership with K Raheja Corp. </li></ul><ul><li>Registered in Isle of Mann (No Corporate Tax) </li></ul><ul><li>£207 million offered on AIM, LSE dated 24 November 06 </li></ul><ul><li>Offer Price - £1.00 </li></ul><ul><li>Nomad and Broker – Deutsche Bank </li></ul><ul><li>Invest in Indian projects via holding company in Mauritius </li></ul><ul><li>Portfolio (22.1 msf) Invested £160 M : </li></ul><ul><ul><li>IT Parks & SEZ (57%), Residential (25%) , Mixed use(18%) </li></ul></ul><ul><ul><li>Mumbai (50%) , Hyderabad (42%) , Bangalore (5%) , </li></ul></ul><ul><ul><li> Pune (3%) </li></ul></ul><ul><li>31 March 09 - Portfolio value down 35% at £529 M </li></ul><ul><li>(30 September 2008 : £760M , 31 March 08 : £810 M) and Ishaan’s 40 % share at £212 M </li></ul><ul><li>31 March 09 - Major Shareholder – Lone Pine Capital (39.08 %) , Deustche Bank AG (12.85%) </li></ul>August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Source – Company reports ( 31 March 2009) <ul><li>Tender Offer in April 2009 </li></ul><ul><li>Purchased 62.0 million shares @ 30 pence </li></ul><ul><li>Pro-forma adjusted NAV per share at 109.5p </li></ul><ul><li>based on reduced share capital </li></ul>
    31. 31. Ishaan Real Estate plc. (cont’d) August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Source – Company reports <ul><li>Tender offer in April 2009 </li></ul><ul><li>Purchased 62.0 million shares @ 30 pence </li></ul><ul><li>Cost of £18.6 million </li></ul><ul><li>31st May 2009 – Shares : 144,897,659 </li></ul><ul><li> Net Cash : £20.3 million </li></ul>
    32. 32. Ishaan Real Estate plc. – Share price movement Source – Company reports August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd. Ishaan vs. HRCO vs. Trinity vs. Unitech * Price on 07 July 2009 <ul><li>I shaan real estate plc. trading at 40.00 GBX* </li></ul>
    33. 33. Thank You August 16, 2009 IndiaREIT Fund Advisors Pvt. Ltd.

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