Funds managed
| Fund name | Asset Class | License |
| Purple Elephant Realty Fund | Real Estate | SEBI AIF CAT II |
About
Purple Elephant Realty Advisor LLP was established in 2017 and it is promoted by Parikh Real Estate Management which is a real estate advisory & transaction firm. Purple Elephant Realty is a real estate firm based in India. It provides financial and strategic investment solutions to high-net-worth individuals and corporate clients. The firm employs an opportunistic strategy and targets commercial, residential and industrial projects across India, including Gujarat, Pune, Mumbai and Bengaluru.
Key staff
Pramit Parikh – Pramit Parikh is a Managing Partner at Purple Elephant Realty Advisors, LLP and Director at Parikh Real Estate Management Private Ltd. Pramit Parikh has been engaged in providing real estate advisory services for over a decade. Through Parikh Real Estate, he has assisted various organizations, high net-worth individuals and corporates, real estate developers etc. on a number of real estate transactions, including entering into joint development agreements, structuring investment and identifying exit. He has done MBA in International Marketing from University of Wollongong, Australia.
Monil Parikh – Monial Parikh is a Managing Partner at Purple Elephant Realty Advisors and Director at Parikh Infracon Private Limited. He is a commerce graduate from Gujarat University. He is the chairperson for the government engagement in CII- Young Indians – Ahmedabad.
Anup Shah – He is CEO at PurpleElephant Realty Advisors, LLP and Vice President at Parikh Real Estate Management Pvt Ltd. Mr. Anup Shah is an architect with more than 12 years of experience. He has worked in India and UK, across the field of real estate investment/development/ research and has actively advised realty focused PE funds like Lehman Brothers, Carval, to name of few on real estate investment across the country. He has done Master in Architecture from University of Westminster, London, UK
Investment philosophy (for firm)
Business objective of the firm is –
- Robust sourcing model
- Superior risk adjusted returns
- Multi asset/ location investment approach
- Transparent management practices
- Customer centric strategies
Fund
The fund intends to primarily focus on investments in the commercial and residential asset class to take advantage of residential and commercial real estate growth in India. The fund deploys an opportunistic strategy and focuses on commercial, residential and industrial projects which are in their early stage of development. The fund has an investment time period of 36-40 months with aim to provide 20-25 percent returns in 18- 24 months post closing. The fund size is 60 crore with green shoe option of 40 crores and minimum ticket size per transaction is 10-15 crore.
In order to achieve the fund’s objective of superior consistent risk-adjusted returns the fund shall be however open to make investments across all real estate asset classes.
Fund objective-
- Focused investment into commercial, residential & industrial assets.
- Active participation and effective project monitoring.
- Investment into credible assets and association with leading developers / real estate players.
- Best returns through timely entry and exits from target investments.
- Hedging of investments through asset backed collaterals and lucrative negotiations.
Investment Process
Media
Realty firm launches private equity fund focused on Gujarat, Indian Express, 27 December 2017
Members of a real-estate brokerage firm are coming up with a Rs 60 crore private equity fund which will focus on industrial and commercial real-estate projects at Ahmedabad and Surat in Gujarat, official sources said. The Purple Elephant Realty Fund is promoted by the Parikh Real Estate Group which is largely into real-estate brokerage and advisory business. “The proposed fund will be focusing on early state investments in key commercial and industrial projects in Gujarat,” said CEO Anup Shah while talking about the new fund which is “open” for investments in the cities of Pune, Mumbai and Bangalore.
“We are currently looking at the best developer partners to invest,” Shah said about the close-ended fund which is looking to provide an ambitious 20-25 percent return to investors in 24-36 months. The official said that about three investors have already signed agreements to park Rs 10 crore in this fund which is an Alternate Investment Fund (Category-II).
The minimum ticket size per transaction will be Rs 10-15 crore, the official said, adding that in the next couple of years they are expecting handsome growth in Tier-II cities like Ahmedabad and Surat. “With RERA in place, there will be a number of developers who will be looking for finance,” Shah said.
Ahmedabad realtor group launches ₹60-crore AIF, Business Line, 09 January 2018
The proceeds will be utilised to finance real estate projects. A city-based group of realtors has launched a Category-2 Alternate Investment Fund (AIF), one of the first of its kind, to finance real estate projects in Gujarat, Pune, Mumbai and Bengaluru in the commercial and industrial space. Set up by Purple Elephant Realty Advisors LLP, the SEBI-approved Purple Elephant Realty Fund will have a fund size of ₹60 crore with a greenshoe option of ₹40 crore. The minimum ticket size per transaction will be ₹10-15 crore with an investment period of 24-40 months.
“The fund will have primary focus on Gujarat with prominent cities of Ahmedabad, Surat and Vadodara,” said Monil Parikh, Managing Partner of the company.
“There will also be an option to invest in projects coming up in Pune, Mumbai and Bengaluru. The minimum capital commitment required to invest in the fund is ₹1 crore and the expected return on the investment is likely to be around 20-25 per cent over a period of 18-24 months post final closing of the fund,” Parikh added.
“During the entire investment process, there will be regular market surveys, close monitoring to identify potential projects with a strong income stream and strategize exits,” said company CEO Anup Shah. The fund offers prospective investors an opportunity to initiate pooled investments over a diversified geography.
Analyst questions
- Where has the fund invested and what is the current status of the projects?
- What are the reasons behind choosing an opportunistic strategy for deploying funds? What characteristics do you think you have which make you capable of pursuing this strategy?
- Other than investing funds, what values do you add to the projects?
- How many members are there in the team which manages the fund? How do different risks like credit risk, exit risk, regulatory and market risk are managed?
- What are some common challenges that a real estate developer faces in India? How do you tackle those challenges?
- Which projects have performed better than your expectations and is there any project which could not perform as per the plan?
- Has the fund been able to achieve the stated returns of 20-24%? If yes, what factors do you think that helped you and do you think you could have performed better?
- What factors do you consider before exiting from a project?
- If there is a situation where the project does not provide an exit point as per the planned model, how would the firm manage that situation especially if the investment tenure in the fund is near to an end?
- What is your view on the current status of Indian real estate sector? What are the new opportunities and challenges you see in this sector?
Prepared by – Punit Bansal, June 2021
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