Rental Yield Plus Opportunities

Investment Strategy

• Sector Focus:Commercial Real Estate – Graded Office Spaces
• Thematic Focus:Institutional Ownership, Pre-REIT Aggregation, Sustainable Development
• Investment Style:Active Management – Direct Asset Control & Optimization
• Risk Profile:Moderate to High Risk (Institutional-grade assets with exit via REITs or strategic sale)

Fund Structure

• Fund Size:Up to INR 5,000 Cr (INR 1,500 Cr + INR 3,500 Cr Green-shoe Option)
• Commitment Period:4 years from final close (extendable by 1 year at IM's discretion)
• Capital Lock-in Period:~3-4 years per asset before exit via REIT or strategic sale
• Minimum Ticket Size:INR 1 Cr
• Sponsor Commitment:Up to INR 75 Cr

Fund Performance

• Net NAV Returns:Not explicitly mentioned, but the fund targets a20% gross IRR
• Hurdle Rate:9% p.a. (pre-tax)
• Past Performance:
  • Edelweiss Infra Yield+ Fund I:~22% Gross IRR,~11% annual distribution
  • Rental Yield+ Fund Targeted Gross IRR:~20%
• Benchmarked Returns:Compared with REITs (9-11%),Fixed Income (7-8%), andLarge Cap Equities (12-14%)

Expense Ratio & Fees Analysis

• Management Fees:
  • 1.75% p.a.for commitmentsINR 1-9.99 Cr
  • 1.50% p.a.forINR 10-24.99 Cr
  • 1.25% p.a.forINR 25-59.99 Cr
  • 1.15% p.a.forINR 60-99.99 Cr
  • 1.00% p.a.forINR 100 Cr+
• Performance Fees (Carried Interest):
  • 20% for INR 1-24.99 Cr commitments
  • 18% for INR 25-59.99 Cr commitments
  • 16% for INR 60-99.99 Cr commitments
  • 15% for INR 100 Cr+ commitments
• Other Expenses: Capped at0.3% per annumof aggregate capital commitment

Governance & Management Team

• Fund Managers:
  • Subahoo Chordia (Head – Real Assets Strategy)
  • Gautam Hora (Managing Director, Ex-GIC, 22+ years experience)
  • Asifali Virani (Investment Director, 17+ years experience in real estate investments)
  • Adishesh Mitra (Investment Director, Ex-IIT BHU, 16+ years in investment banking)
• Decision-Making Process:Disciplined asset selection based on institutional-grade office buildings with strong rental upside potential
• Auditors & Compliance:Standard SEBI-compliant governance framework
• Disclosure Standards:Strict adherence to SEBI AIF regulations, transparent investor reporting

Legal, Compliance & Investor Protection

• Regulatory Approvals:SEBI-registered Category II AIF (IN/AIF2/22-23/1225)
• Taxation Aspects:Income classified as interest, capital gains, and other categories – investors should consult tax advisors
• Investor Grievance Redressal:Follows SEBI-mandated compliance framework

Valuation & Liquidity Considerations

• NAV Valuation Methodologies:Regular valuation based on real estate market data and institutional-grade assessments
• Liquidity Options:Exit through REIT listing, strategic sale, or recapitalization
• Alignment with Investor Goals:Focus on income generation (7-9% yield) and capital appreciation (~15% expected capital gains on exit)
• Risk Appetite Suitability:Best suited for institutional investors, HNIs, and long-term wealth preservation strategies