ICICI Prudential Real Estate

Funds managed 

Name	Asset class	License
ICICI Prudential Debt FundIN/AIF2/14-15/0105	Debt	AIF Category 2
ICICI Prudential Real Estate AIFIN/AIF2/14-15/0112	Real estate	AIF Category 2

About

ICICI Prudential Asset Management Company is a joint venture between ICICI Bank of India and Prudential Plc of the UK. It is one of the most pre-eminent real estate investors in India having over 10 years of real estate investing experience across key Indian cities. Their difference lies in their ability to navigate through dynamic market conditions, while remaining focused on meeting client’s goals.

The real estate business of the company which was first started in 2007 has executed 65+ investments and has realized over” INR 40 Billion through 40+ complete exits and 12+ partial exits. It has around Rs. 3,700 crore of real estate assets under management

Key staff 

Rahul Rai (Head): Rahul joined the AMC in November 2010. With over 24 years of experience spanning real estate investments, Corporate Finance and Tax & Regulatory assignments, he leads the Real Estate business practice at the AMC. Within the real estate sector, he has exposure across all product classes and cities. Rahul is a Chartered Accountant and Cost Accountant. He is a graduate in Commerce from Mumbai University.

Sunil Munot (Principal-Investments): Sunil joined the AMC in 2011 and is responsible for sourcing deals and managing developer relationships. Being one of the principals, he is also responsible for the entire life cycle of the investment. He has over 19 years of experience spanning Real Estate Acquisitions, Advisory and Tax & Regulatory assignments, with exposure to Real Estate investments across India. He previously led the India office of Marathon Asset Management – a New York headquartered Alternate Investment Fund, which managed an India dedicated Real Estate Portfolio. He has also worked with Ernst & Young and Arthur Andersen, advising clients on cross-border acquisitions and Mergers & Acquisitions in a variety of sectors including Real Estate. Sunil is a Chartered Accountant and Graduate in Commerce from Mumbai University.

Vishal Gupta (Fund Manager): Vishal has over 12 years of experience in the real estate industry spanning across mortgage lending, advisory services, investment banking and wealth management. Vishal has been with ICICI Group for more than 10 years. He has worked in various capacities at ICICI Group including his last assignment as Regional Head, Structured Finance at ICICI Home Finance. Vishal is a Chartered Accountant and holds a Bachelors of Commerce degree from Delhi University.

Investment philosophy

The company structures transactions to maximize value and aim for equity like returns secured by debt like risks. The company seeks to invest in projects located in established micro-markets by developers with a proven track record. For commercial pre-leased offices, it seeks to acquire high quality pre-leased office assets in key metros of India, generating stable periodic income and targeting capital appreciation at exit.

Portfolio construction

The fund invests both in residential and commercial. Its investment in commercial buildings started in 2012 with pre-leased office investments in Mumbai, Pune and NCR. The company’s target return is around 16-17%. A couple of exits have been achieved at returns of 21% and 17%. For the residential AIF, target return has been around 21-23%.

For Residential (Opportunistic)

Fund	Vintage	Size (in Rs. billion)	No. of investments
Portfolio 1	2007	7.5	16
Offshore Portfolio	2007	3.6	8
Venture Capital Fund	2013	10.0	21
AIF – I	2014	7.2	15+
AIF – II	2015	3.4	3+

For Commercial (Pre-leased office)

Fund	Vintage	Size	No. of investments
Commercial portfolio	2012	2.7	5

Media

ICICI Pru to raise up to ₹2,000 crore for fresh real estate fund

https://www.hindustantimes.com/business/icicipru-to-raise-up-to-2-000-crore-for-fresh-real-estate-fund-101618771087082.html

ICICI Prudential AMC aiming to launch sixth residential real estate fund

https://www.vccircle.com/icici-prudential-amc-aiming-to-launch-sixth-residential-real-estate-fund/

Analyst questions

1. Work from home has become a new culture and is expected to stay in trend for a long period of time and since one of your portfolio focuses on commercial pre-leased offices, what’s your next point of action to overcome this hurdle?

2. You have been in the real estate business for over 10 years now, so what has been the average return on real estate funds over the last few years and going forward do you expect similar returns considering the current pandemic that the country is in?

3. You target capital appreciation while exiting the market. But is there any maximum holding period for you beyond which you would definitely consider exiting the market whether you are getting a desirable amount or not?

By Rakshit Murjani, June 2021