Walton Street invests Rs 165 cr in Sowparnika Homes' Bengaluru projects

Sowparnika caters to the middle-income/affordable segment with an average ticket size of Rs 50 lakh in a project close to key employment centres and IT Hubs

Walton Street Blacksoil Real Estate Debt Fund II (WSBREDF-II) has announced an investment of Rs 165 crore in a portfolio of projects being executed by Sowparnika Homes Private Limited primarily across Bengaluru.

Sowparnika Homes is catering to the middle-income/affordable segment with an average ticket size of Rs 50 lakh in a project close to key employment centres and IT Hubs such as Sarjapur Road, Whitefield, and Old Madras Road. 

“We are pleased to partner with Sowparnika Projects whose core focus is the development of mid-income and affordable housing projects using continuously innovative and sustainable practices towards the development process. This funding shall facilitate the delivery of about 2,750 homes in this category,” said Vimal Jangla on behalf of WSBREDF-II.

Sowparnika Projects has been into real estate for about two decades and is a participant in the Pradhan Mantri Awas Yojana (PMAY), a central government initiative to provide affordable housing to the urban poor. The company 

has a presence in Bengaluru, Kerala, and Tamil Nadu in southern India. 

Dwelling on the partnership, Ramji Subramaniam, Promoter of Sowparnika Projects, said, “Our partnership with Walton Street Blacksoil will help us deliver high-quality value homes and apartments in a timely manner to end users in the affordable and mid-income segment. We are aligned with the Prime Minister’s Housing for All scheme, and have delivered more than five million sq ft across 7,500 homes in this segment. Currently we have about 4,500 more homes spread across 4 million sq ft under development." 

WSBREDF-II has already crossed its target fund size of Rs 500 crore and stepped into green shoe. It has had active participation from large family offices, corporates, offshore investors and HNIs. With this investment, two-thirds of the target fund size has already been committed across seven investments. 

WSB, an alternate Investment platform jointly held by the ex-India Management team of Walton Street and the Blacksoil group, has been investing in the Indian real estate space since 2008-09. WSB’s presence in the market across multiple cycles has allowed it to pioneer structured debt solutions and build multi-year relationships with developers in their chosen micro markets. 

The company and its affiliates have committed over Rs 17,500 million of debt capital in residential real estate. 

It done over 40 transactions spread over five metros, and has already secured 27 complete and 5 partial exits. The management team has been together for over 13 years and has advised Walton Street on more than $180 million of real estate equity assets in India.