New Delhi, May 19 -- Real estate investment firm WSB Partners has invested Rs 75 crore ($7.7 million) in Mumbai-listed developer Omaxe Group's residential plotted projects in Madhya Pradesh's Ujjain and Indore cities.
Omaxe will mainly use the money as growth capital and allocate some portion to meet working capital and reserves requirements, the company said in a statement.
The investment highlights WSB's focus on partnering with developers to capitalise on opportunities, including those in high-growth Tier II and III markets, the statement said. The strategy is anchored in strong execution capability, cashflow visibility, and disciplined structuring, as per the statement.
The investment marks WSB's foray into tier II and tier III markets, which are increasingly attracting institutional capital, driven by a combination of rising incomes, improving affordability, and significant infrastructure investments, it added.
"This investment reflects our growing conviction in Tier II and III markets, where we see strong underlying demand supported by infrastructure development and improving affordability. WSB is also exploring multiple transactions with Omaxe Group in other Tier II/III cities across the country," Rahul Rajendran, principal-investments, WSB Partners.
Omaxe is a publicly listed real estate developer with a portfolio spanning residential, commercial, retail, and integrated township developments, with a presence across North and Central India. It has delivered approximately 140.17 million sq ft of real estate across 31 cities in eight states, including Punjab, Haryana, Uttar Pradesh, Madhya Pradesh, Rajasthan, Delhi, Uttarakhand, and Himachal Pradesh.
Last year, Brookfield's Oaktree Capital Management invested Rs 500 crore in Omaxe projects through non-convertible debentures.
WSB is the alternative investment firm formed after Blacksoil backed the management buyout of Walton Street Capital's India debt business in mid-2021. It is backed by the family offices of Allcargo Group, Navneet Education Limited, Mahavir Agency and BAsoil Advisory. In March, VCCircle reported that the senior management team of WSB Partners-Kaushik Desai, Vinit Prabhugoankar and Vimal Jangla-moved out to join Neo Asset Management.
The firm is currently deploying the WSB Real Estate Debt Fund III, which has a corpus of Rs 565 crore, according to its website. Overall, it has committed about Rs 4,000 crore in capital across more than 75 real estate investments since 2013.
Published by HT Digital Content Services with permission from VC Circle.