Real Estate and Structured Finance: Fund Raising and Fund Investments – Innovative and Emerging Structures

(With analysis on the how the new dispute resolution mechanism would work for foreign investors in light of the recent amendments to Arbitration Act and setting up of Commercial Courts)

 

Thursday, November 19, 2015

5:00 PM - 6:30 PM (IST) - Session

6:30 PM - 7:30 PM (IST) - Cocktail

MUMBAI – BKC AUDITORIUM, NISHITH DESAI ASSOCIATES, 2ND FLOOR, 3, NORTH AVENUE, MAKER MAXITY, BANDRA-KURLA COMPLEX, MUMBAI – 400 051, INDIA

Prelude

2015 has been an interesting year for both real estate and structured finance. While a majority of private equity deals in real estate were largely structured debt deals involving listed bonds in its variations, few big ticket pure equity deals did manifest the resurgence of equity in real estate. From a fund formation perspective, we witnessed enhanced interest in captive investment platforms with reputed institutional developers. We also witnessed substantially enhanced, though cautious, offshore LP interest in Indian real estate.

In this round table, we discuss structures and strategies for foreign investment in real estate and structured finance that we see as innovative and emerging in our role as legal and tax consultants to LPs, GPs and offshore private equity funds. 

Focus Area

A. Fund raising

• What are LPs looking at?
• Mushrooming real estate investment platforms – what’s so interesting about it?
• Is the NBFC market still going strong?
• Real estate AIF v. NBFC v. Listed bonds – what works best?

B. Is equity back in real estate?

• What is driving equity in real estate?
• Ambiguity raised by Press Note 10 of 2014
• Equity investments in completed assets – permitted or not?
• Safeguards to be considered

C. Structured debt

• Listed bonds and grappling with the 3 year lock in – what does it mean and how is it computed?
• Structuring principal repayment during lock – in
• Redemption premium – capital gains or business income? How is to be treated in the books of the investor and the investee?

D. Changing landscape of dispute resolution mechanisms in India

• Recent path breaking amendments to arbitration act and setting up of specialised commercial courts

Flow of the Session

4:30 PM TO 5:00 PM (IST):	Registration
5:00 PM TO 6:15 PM (IST):	Panel Discussion
6:15 PM TO 6:30 PM (IST):	Q & A
6:30 PM TO 7:30 PM (IST):	Cocktails and Networking

Speakers

MASATOSHI MATSUO

President & Chief Executive Officer, Genkai Capital Management Co Ltd

Masatoshi Matsuo is the Founder, President and CEO of Genkai Capital Management Co., Ltd., a Japanese real estate fund management and investment advisory firm managing a real estate portfolio of approximately US$ 3 billion. Before founding Genkai Capital Management, Mr. Matsuo served as president of Fukuoka Realty, where he successfully executed the initial public offering of the Fukuoka REIT Corporation. Wharton School MBA and Lauder Institute MA; University of Pennsylvania. BA in Law; University of Tokyo

NISHCHAL JOSHIPURA

Partner, Private Equity and M&A, Nishith Desai Associates

Nishchal Joshipura is a Partner – in – charge of Private Equity and M&A, Nishith Desai Associates. He also heads fund formation and real estate investments practice. He is a Chartered Accountant, an MBA and a Lawyer. Nishchal specializes in legal and tax structuring of cross-border transactions besides documentation and negotiation of deals.

RUCHIR SINHA

Co-Head, Private Equity and M&A, Nishith Desai Associates

Ruchir Sinha co-heads Private Equity and M&A Practice and heads the Real Estate Practice Group at the firm. Ruchir has also been involved in advising on setting up of fund formation and several leading real estate investment platforms. He also contributes to policy development for private equity in real estate in India through several international associations and was most recently involved in drafting of the SEBI REITs Regulations. He was nominated amongst the top 3 lawyers in India (under 35 category) at IDEX Legal Awards. He is also the recipient of the Real Estate Section Scholarship of the International Bar Association for his paper on ‘Funding Real Estate Projects’.

VYAPAK DESAI

Partner, Securities and International Commercial Dispute Resolution Practice, Nishith Desai Associates

Vyapak Desai is a Partner-in-charge of Corporate Securities and International Litigation Practice group at the firm. He represents clients in a wide-range of services with a special focus on cutting edge cross-border and complex litigations and international commercial arbitrations. He has extensive experience advising clients with creative and pragmatic solutions in order to attain effective dispute resolution strategies. He has a deep understanding of corporate and securities laws and specializes in litigation related to securities laws.