Case Studies

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Real Estate

Case Study 1

A Real Estate Investor with 3 year horizon was looking for investing Rs. 10 - 15 Cr in residential properties with a reputed developer, offering good discount to current prices and assuring x% of fixed returns.

Our suggestion was to bulk invest in 50 flats in a project where foundation stage construction work was going on. All approvals and permits were in place and the retail selling price of flats was Rs. 6,500 per sq. ft. + floor rise. We negotiated a price of Rs. 4,500 (works out to >30% discount) all inclusive and 80% down payment.

This gave the developer a decent chunk of money for his project and gave the investor a good discount from retail pricing in addition to assured buy back. Within 6 months of investment, the retail price (end user price) of the project went up to Rs. 7,000 + floor rise for retail purchasers. We suggested our investor to sell 20 flats to another investor group at Rs. 5,850. This ensured that the investor got back 53% of his investment and a profit of 60% annualized for 20 flats within 6 months.

The investor currently has an option to sell flats every 6 months or hold till project completion and sell at expected rate of Rs. 8,500 + floor rise.


Case Study 1

A listed company was looking for Rs. 25 Crore term loan for an upcoming project. The CFO of the company approached us with expectations of quick turnaround and competitive terms.

We prioritized the project, prepared its detailed project report, gathered the requisite financial workings in association with the company's finance department, approached top managements of 5 Indian banks and got the case approved in 3 weeks time, subject to security compliance by the borrower company.

This helped the promoters of the company avoid raising expensive finance from private sources and gave the lending bank a great customer in a new segment.

Case Study 2

An unlisted company had come out with a novel idea in the field of ecommerce, for which initial ground-work was complete, certain test customers had provided positive results and overall industry parameters were looking favorable. The company's management had exhausted their personal funds and were in active discussions with Private Equity groups for selling stake in the company.

The management was in a cash crunch for the 6 month period they were expecting negotiations to last with the PE funds. We met with the entire management, assessed the space in which they were operating, gauged their strengths and weaknesses vis--vis the other probable players and set out to find an angel investor or group of investors who would be interested in the idea and could provide the needed liquidity.

We eventually zeroed in on an investor of a private wealth manger of a reputed financial institution who was active seeking early stage opportunities in a similar space. The investor was happy to get entry in a company, early on in its infancy and the company was happy to take on board a strategic investor who could also provide needed funding till they could conclude their terms with the PE groups.

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