ATHAMUS

AthamusVentureManagementFundsPrivateLtd.

ATHAMUS
ATHAMUS

ATHAMUS is a Bangalore based Venture Fund Manager

Provides investors exposure to proprietary real estate deals

ERF-I offers investors opportunity for true diversification within their overall
portfolios while minimizing risk

Focused on the development and implementation of Real estate

projects in strong and stable markets

Investments in ERF-I underpinned by real assets (inestors have a direct

stake in land and building assets unlike other funds)

Wholly owned development company to develop all the funded projects

Provides clients with access to investments not usually available to the

individual investor

ATHAMUS
ATHAMUS

Introduction to the Team

Investment Opportunity

Investment Strategy Highlights

Excedo Realty Fund I Detail

Current Market Scenario

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ATHAMUS

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ATHAMUS

Strong corporate &

government background

Management team members have been part of large

developers, fund like ICICI
Venture, IREO,Ascendas, Unitech Limited, Punj
Lloyd, Emmar MGF, Vatika, M3M etc.

Impeccable credentials

Management team has worked together in start ups to

make them successful businesses and have more than
80 years of combined experience in the business

Cross-functional expertise

Funds Management, Real estate management and

execution Urban Planning, Land
Acquisition, Investment Management,

Multi-industry experience

Real Estate, Realty Funds, Investment

Banking, Financial Services, Real Estate
Developers, Hospitality & Construction

Global outlook

Working experience with Domestic as well as off

shore funds and developers

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ATHAMUS

Directors on the Board

Girish Bhagat

Management Team
Ashok Kinha
Executive Director & CEO

Ashok Chaudhary
COO & Chairman, IC

Sanjeev Nangia

Gaurav Jain
Executive Director-Finance &
Corporate Strategy

Mujib Mundewadi

Vijay Dhuler
Executive Director & CIO

Advisors/Retained
Firms
J.SAGAR/AZB/DUA
Legal Counsel

IL&FS Trust Company

Limited
Trusteeship Services

HDFC Bank
Bankers to the offer

One of the Big Four

Audit Services

Computer Age Mgmt.

Services Pvt. Ltd. (CAMS)
R&T Agent

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ATHAMUS
Gireesh Bhagat
Director
Mr. Gireesh Bhagat has over three decades of experience in areas of Investment
Management, capital Markets, Investment Banking and Alternate Investments.
He is the Managing Director of IndiaNivesh Limited, a SEBI reigstered VCF. He has been
serving as honorary secretary to The EuroIndia Centre (EIC), a non profit body founded by
Dr. Manmohan Singh and Former Prime Minister of France to build cooperation between
India and Europe. He is a member of CIIs National Committee on Real Estate & Housing
and the International Advisory Council of DevistaIT SA, Spain. Gireesh worked for HSBCs
Global Technology Centre and was the founding Managing Director of HDFC Securities.
He also co-founded lIT InvesTrust a Capital Markets and Corporate Advisory firm. Before, at
Citibank, he pioneered the Custody business in India. In Unit Trust of India (UTI) he was
Executive Assistant to the Chairman and a Member of UTIs Committee of Management.
Therein he launched the first ever India Fund. He has also served on Government of India
appointed High Powered Committee on Stock Exchange Reforms.
Mr. Bhagat holds a Masters degree in Business Economics and is a Graduate in
Economics from the University of Delhi. Mr. Bhagat is a Fellow of the Royal Institution of
Chartered Surveyors (FRICS).

ATHAMUS
ATHAMUS
Sanjeev Nangia
Director

Mr. Nangia is a visionary and serial

Mujib Mundewadi
Director
Mr. Mundewadi has more than 16

Entrepreneur with over 30 years of

years of experience across financial

experience in marine technology and

services and private equity. He has

infrastructure consulting. He is
successfully mentoring various niche
businesses including IHD Ltd, Design

worked in ICICI Bank

Limited, CarVal Investors, (Private
Equity arm of Cargill, Inc.) and he
has invested USD 200 million across

Matrix, Janus Engineering - Electrical

real estate and structured

Design and Contracting

finance, Currently promoting Ceres

Company, King Network

Capital & Financial Services Pvt., a

and mCritical Infrastructure

boutique investment banking

Consulting.

company

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ATHAMUS
Gaurav Jain
CFO

Mr. Jain is a Chartered Accountant

Ashok Kinha
CEO
Mr. Kinha has been associated with

with 18 years of experience in

management of funds and developers

Strategic Financial

for the last 16 years. He headed

Planning, Budgetary control &

Auditing, Business transaction

legal, compliance and risk functions

with organizations like Azure
Capital, ICICI Venture Funds and IREO

processes, and systems. He has

(US based real estate fund).

been associated with real estate

Additionally, he has represented

funds ,NBFC, developers and

construction companies like
IREO, Punj Lloyd, M3M Allianz.

companies like Knight & Marshall

(Singapore), Ascendas and Unitech
Limited. He has contested high value
real estate litigations before various
courts in India.

ATHAMUS
ATHAMUS
Ashok Chaudhary

COO

Mr. Choudhury is a registered

architect with Council of
Architecture with over 13 years of
experience with leading
developers such as IREO, MGF
and Vatika Group. He has been
involved in land

Vijay Dhuler
CIO
Mr. Dhuler has been a successful
entrepreneur for the past 20 years.
He founded and sold a telecom
startup in the US. He has been
investing in real estate in Bangalore
and overseas for the past 10 years.
He has thorough knowledge of the

acquisitions, project

local real estate market. He holds

approvals, project development

an MBA with a finance focus from

and launching.

The Duke University in the USA.

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ATHAMUS

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ATHAMUS

Promoter

Purpose

Benefits

Focus

Launched by
ATHAMUS, Invest
ment Manager
to Excedo Realty
Fund-I

Develop projects
with property
owners, primarily
through
acquisition
and/or project
financing via
Special Purpose
Vehicles

Attractive returns
expected with
several
advantages of
investing in fund
over other asset
classes/direct
investment in
real estate

Residential

+
Team of
industry experts
for
sourcing, analy
zing, and
structuring
deals

Fund can
negotiate
better
commercial
terms with land
owners

Greater
diversification
of risk by
investing
across
cities, and
property types

Higher
returns than

projects
sourced as

direct

proprietary
deals

=
Dedicated
team for
rigorous
monitoring of
funded
projects

investment
in real
estate by
individuals

ATHAMUS
ATHAMUS

Investors

Investments

Fee +
Carry

WOS

Athamus Venture
Management Private
Limited

Advisory
services

Autus Developers
Pvt. Ltd.

Note: SPV: Special Purpose Vehicle

Returns
Services

Excedo Realty Fund-I

Investments

Fee

IL&FS Trust Company

Limited

Returns

Project
Execution

SPV 1

SPV 3

Operations
Cost

SPV 2

SPV 4

WOS: Wholly Owned Subsidiary

ATHAMUS
ATHAMUS

Inherent team strength to

invest in acquisition of
greenfield projects through
procurement &
consolidation

Efficient project
management for
better adherence to
quality and schedule
Autus
Developers
Pvt. Ltd.*
In house capability to
manage and develop
projects in each
investment of ERF I

Skill & strategy to

capture market upside
by direct selling in
market

Note: * ATHAMUS to implement appropriate controls and business rules to eliminate any potential conflict of interest

ATHAMUS
ATHAMUS

Proprietary Deals

Build Exit model with focus on

residential projects

Primarily residential projects

Allows to takeout invested capital profits

before project completion.

Capability to develop projects

without developers

Direct joint development deals with land

owners.

Unique selling approach for

accelerated sales

Customized projects for employee

associations.

Professional background of
founders

Established network from past association

and track record

ATHAMUS
ATHAMUS
Business Factor

Developers

Other Funds

ERF - I

Advantage of ATHAMUS

Development/construction Land buy upto development

stage
stage
Returns from land buy stage

Stage of Investment

Land buy

Investment

Partly by Promoter

Investors

Investors

Return on entire investment

Projects

Proprietary

Invest with third party

developers

Proprietary

Return at par with developers

Development

Self/ outsourced

By investee developers

Self

No Loss of revenue

Self

Sale price and timing

controlled by fund

With investor

Investment decisions entirely

with fund

Sale & Exit

Control on Investment

Self/ outsourced
Solely with Promoters

Controlled by investors
With third party investee

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ATHAMUS

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ATHAMUS

Proprietary deals at land buy stage to maximize the returns

Focus on niche segments and leverage innovative
investment themes to tap into real demand at prices
reflecting intrinsic value
Adopt robust investment guidelines and allocation targets for
a well diversified portfolio
In house capability to plan-build-develop-exit model for all
funded projects

ATHAMUS
ATHAMUS

National Capital Region

New Delhi
Gurgaon
Noida
Gujarat
Ahmedabad
Surat
Vadodara
Karnataka
Bangalore
Mangalore
Mysore
Kerala
Kochi
Thirupuram

Jammu
and Kashmir
Chandigarh
Punjab
Haryana
Delhi
Rajasthan

Maharashtra
MMR
Arunachal Pradesh Nashik
Pune

Himachal Pradesh
Uttaranchal
Sikkim
Assam

Uttar
Pradesh

Bihar
Meghalaya

Gujarat
Daman & Diu

Madhya Pradesh

Tripura
Orissa

Maharashtra
Dadra & Nagar Haveli
Andhra
Pradesh
Goa

Tamil Nadu
Chennai
Salem
Nagaland
Coimbatore
Manipur

Mizoram

West Bengal
Jharkhand

Andhra Pradesh
Hyderabad
Visakapattanam
Vijayawada

Chattisgarh

Pondicherry

Karnataka

Growth Cities
Ranchi
Dehradun
Raipur

Andaman and
Nicobar Islands

Lakshadweep
Kerala

Tamilnadu

Pre identification allows access to attractive projects in more developed states with
minimized operational complexity

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ATHAMUS

Target Allocation
% target allocation
100%
80%
60%

TierI

Commercial

Investment

Retail

Construction
Construction

TierIII

40%
20%

Tier I

Tier II
(Mid-size)

Residential

TierII

Land dev.

land dev.

Project stage

Project type

0%
City type

Developer
category

Property type

Well Balanced and diversified investment portfolio

ATHAMUS
ATHAMUS

Target

exposure to one project limited to 25% of fund

Target

maximum investment in a single developer limited to 25%

of fund

Target

maximum investment in one city limited to 70% of fund

Target

investment period of 5 years or less

ATHAMUS
ATHAMUS
Deal stage

Project partners

Acquisitions under active

negotiations with land owners
and developers for at least five
deals

Tie-ups being executed with

const. cos., architects, regional
project mgmt.
cos., brokers, investors

Excedo Realty
Fund-I

Project financing to commence

after first closing

Project financing plan

Market assessment being done

for projects under advanced
stages of negotiations

Project evaluation

ATHAMUS
ATHAMUS

1.Size of the fund: Rs. 450 crores + Green Shoe option of Rs. 150
crores at the discretion of the Investment Manager

2.Fund life: 6 years with option of 1 year extension at the

recommendation of the Investment Manager

3.Minimum contribution: Rs. 5 crore for banks and financial

institutions and Rs. 10 lakhs for individuals and other investors

4.Commitment period: 2 years

ATHAMUS
ATHAMUS
5.Hurdle Rate: 12% compounded return on capital (before tax)
6.Carried Interest: 20% and higher compounded return on capital
(before tax and carried int.)-20% of net profits (before tax) with
catch up; 12% to 20% compounded return on capital (before tax
and carried int.)- 17.5% of net profits (before tax) with catch up

7.Management fee: 2% per annum* (of committed amount

during commitment period, net invested principal for remaining

tenure)

8.Indicative drawdown schedule: 100% upfront for individual

investors below Rs. 1 Crore. For others, 20% upfront with balance in 24 quarterly draw downs that may not be equal

Note: *Plus applicable service tax

ATHAMUS
ATHAMUS

Quarterly investment updates

Audited annual/unaudited half yearly statements

Half yearly portfolio valuation & NAV declaration

Investor queries at any point of time

ATHAMUS
ATHAMUS

Promoted by professionals with impeccable credentials and strong

experience in real estate as well as sectors driving the growth of real
estate

Highly differentiated strategy with focus on niche market

segments, innovative investment themes, small/mid-size

Strong network of real estate developers, property owners and other

market intermediaries with robust pipeline of attractive proprietary
deals

Supported by leading Indian industrialists and entrepreneurs with

significant fund commitment

Unwavering commitment to best-in-class corporate governance

practices that include independent committees, robust processes
and complete transparency to investors

ATHAMUS
Profit Sharing with Investors

ATHAMUS

ATHAMUS
ATHAMUS
Fund to invest in Equity/Equity Linked Instruments (convert. debt, pref. shares) in SPV
Investment in Shares
Dividend income
Dividend received by fund is exempt from tax section 10(34) of IT Act
However, Company distributing dividends is liable to dividend distribution tax @ 16.60875%*
Profit from sale/transfer of shares
If considered as capital gains, Capital Gains = sale consideration cost of acquisition
expenses incurred in connection with such transfer
If considered as business income, Net Income taxable @ 33.2175%*. Management fees could
constitute an allowable expense in this case.
In computation of business income, Securities Transaction Tax (STT) would be allowed as an
expense.
Capital gains

Long-term Capital Gains

Holding period

Tax rate*

Short-term Capital gains

Holding period

Tax rate*

Listed shares
(where STT paid)

More than 12
mths

Exempt u/s
10(38)**

12 mths or less

16.60875%

Unlisted shares (or

STT not paid)

More than 12
mths

22.145% with
index. benefits

12 mths or less

33.2175%***

Note: *Tax rate includes surcharge at 7.5% and education cess at 3% of tax amount; **11.0725% tax rate applicable
without indexation benefits if shares not subject to STT; ***Max. tax rate assumed

ATHAMUS
ATHAMUS

Investment in Debentures
Interest income
Interest received by fund is taxable @ 33.2175%*
Premium receivable on redemption of debentures could be considered interest income
Profit from sale/transfer of Debentures
If considered as capital gains, Capital Gains = sale consideration cost of acquisition
expenses incurred in connection with such transfer
If considered as business income, Net Income taxable @ 33.2175%*. Management fees could
constitute an allowable expense in this case.
Capital gains

Long-term Capital Gains

Holding period

Tax rate*

Short-term Capital gains

Holding period

Tax rate*

Listed Debentures

More than 12
mths

11.0725%***

12 mths or less

33.2175%**

Unlisted debentures

More than 36
mths

22.145% with
index. benefits

36 mths or less

33.2175%**

Note: *Tax rate includes surcharge at 7.5% and education cess at 3% of tax amount; **Max. tax rate assumed; ***In
case of listed debentures, it is possible to take a view that concessional tax rate of 11.0725% (without indexation) per
proviso to section 112 should be available [reliance could be placed on the decision of Authority for Advance Rulings
in case of McLeod Russel India Ltd (299 ITR 79) & Timken France Sas (212 CTR 349) and Mumbai Tribunal in Alcan Inc.
vs DDIT (16 SOT 8)]. However, tax authorities may seek to apply normal tax rate@22.145% relying on Mumbai Tribunals
decision in BASF Aktiengesellschaft vs DDIT (293 ITR 1).

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ATHAMUS

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ATHAMUS
Real GDP growth across major economies, %
15

13
9.4

10

7.3

6.5
5.4

5
2

2.6
1.1

0.8

0.7

0.2

2.5
1.3

2.3

1.7

2007
2008

-0.6
-5

8.5
7.5

2009E

-0.7

2010E

-2.6
-4.2
-6.2

-6

Source: World Economic Outlook, IMF, July 2009

China

India

Japan

Germany

UK

USA

-10

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ATHAMUS

High returns expected from real estate assets in medium/long

term.
Real estate assets have provided superior risk-adjusted
returns compared to other asset classes
Current decline in real estate valuations offers attractive entry
opportunities
Companies increasingly considering Tier II/III cities to avoid
high real estate prices, high labor cost and infrastructure
issues
Cities like
Mysore, Coimbatore, Vishakhapatnam, Jaipur, Chandigarh
etc. likely to see increased demand for real estate
Nasscom estimates increasing share of growth of IT/ITES sector
from Tier II/III cities

ATHAMUS
ATHAMUS
Rising Income
No. of Indian HHs by inc. levels, Mn

1
13

80%

3
61

CAGR
20052025

10

128

60%
40%

192

11%

80%

12%

60%

180

20%
143 -2%

0%
Low inc.

100%

40%

20%

2005

Mortgages as % of GDP

2015

2025

Mid inc.

High inc.

0%
Denmark
UK
USA
Germany
Hongkong
Taiwan
Singapore
Malaysia
Thailand
Korea
China
India

100%

Low Mortgage penetration

India witnessing sharp rise in high/middle income household while having one of the
lowest mortgage penetration rates
Note: Low income: <Rs.200K, Mid income: Rs.200-1000K, High income: >Rs.1000K
Source: McKinsey; Multiple sources

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ATHAMUS
Growing urbanization
Urban population, Mn

% of Indian population across cities

% urban population
50%

700
600
500
400
300
200
100
0

40%
30%
20%
10%
0%

Urban pop.

% of Indian population
40%
35%
30%
25%
20%
15%
10%
5%
0%

Other
cities
Gurgaon
Noida
Hyderaba
d
Bangalore
Chennai
Kolkata

% urban pop.

Tier II/III cities share of urban as well as overall population expected to steadily
increase overtime
Note: Figures projected for 2009 onwards
Source: IMF; ABN AMRO analyst report with some adjustments

ATHAMUS
ATHAMUS

% of growth
100%
80%

Tier III

Tier III

Tier III

Tier II
Tier II

60%

Tier II

40%

Tier I
Tier I

20%

Tier I

0%
FY07

FY08-10E

FY11-17E

Tier II/III cities getting increasing attention from companies looking to expand their
operations
Source: Nasscom; Other research

ATHAMUS
ATHAMUS

Vijayawada, Vishakhapatnam, Coimbatore

Bhubaneshwar, Ahmedabad, Mangalore, Nas
hik, Mysore
Surat, Thiruvananthapuram, Nagpur, Jaipur, V
adodara
Indore, Jodhpur, Kochi, Lucknow
Chandigarh
Mumbai
0

0.2

0.4

0.6

0.8

Commercial affordability vs Mumbai

Source: Jones Lang LaSalle

ATHAMUS
ATHAMUS

Sizeofland:
TermsofDeal:
Landcost:
FSI:
FSIcost:
Expectedsaleprice:
ProjectDuration:
Salecycle:
Sellablearea:

300,000Sqft
100%Purchase
1500/Sqft
3
500/Sqft
4500/Sqft
4years
4year
900,000Sqft

ATHAMUS
ATHAMUS
InitialInvestment(landpurchase):
Approvalsandstartup:
Constructioncost:
TotalConstructioncost:
TotalRevenue:
ExpectedIRR(pretax):

Ver2.0fordistributors
V

f di t ib t

45Crores
5Crores
1500/Sqft
135Crores
360Crores
51%

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ATHAMUS

InitialRequirementof2000Sitesandupto10,000
Typicalsizeof1200Sqft(30x40)
Pricepersite
CostofLand
ExtentofLand:50acresfirstinstallment
Expectednumberofsites:1000

Ver2.0fordistributors

ATHAMUS
ATHAMUS

Initialinvestment(about60daysfromsigningLOI):

25CR

20%paymentreceived30daysaftersaledeed:

10CR

40%paymentreceivedafterapprovals:

20CR

40%paymentreceivedatpossession:

20CR

Developmentandmarketingcost:

17CR

Durationofproject:

<2yrs

ExpectedIRR(pretax):

81%

Ver2.0fordistributors

ATHAMUS
ATHAMUS

InitialInvestment(landpurchase):
Approvalsandstartup:
Constructioncost:
TotalConstructioncost:
TotalRevenue:
ExpectedIRR(pretax):

Ver2.0fordistributors

46Crores
5Crores
2000/Sqft
28Crores
140Crores
50%

ATHAMUS
ATHAMUS

Sizeofland:
TermsofDeal:
Landcost:
FSI:
FSIcost:
Expectedsaleprice:
ProjectDuration:
Salecycle:
Sellablearea(ourshare):

Ver2.0fordistributors

70,000Sqft
50:50JD
12000/Sqft
4
3000/Sqft
10000/Sqft
3years
<1year
1,40,000Sqft

ATHAMUS
ATHAMUS

This presentation is intended only for the benefit of potential investors to whom the presentation is made or delivered
for the purpose of considering a possible investment in the Excedo Realty Fund-I.

Any reproduction of this presentation in whole or in part, or the disclosure of its contents or the distribution of the
presentation, without the prior written consent of Athamus Venture Management Private Limited is prohibited.

The presentation is not and should not be deemed to constitute an offer to invest or a solicitation of an offer to
invest, to or from the public in general or to or from any person.

The contents of the presentation are provisional and may be subject to change. The presentation is neither a
prospectus nor an offer or invitation to apply for units of fund. The information contained herein is not exhaustive and
must be read in conjunction with the information memorandum and other documents, which would be finalised and
circulated upon receipt of registration as a venture capital fund from SEBI. Some of the information contained in this
presentation is based only on projections made by the management team.

While reasonable care has been taken to ensure that the information included herein is correctly and fairly
represented, ATHAMUS, and other parties involved in the preparation hereof assume no liability for the
relevance, accuracy or completeness of the contents herein.

In making an investment decision, potential investors must rely on their own examination of the fund documents and
the terms of the offering, including the merits and risks involved.

Before making an investment, each potential investor should make their independent assessment and inquiries and
consult their own advisors as to legal, business, tax and related matters concerning an investment in fund.

The fund and its portfolio companies (if any) are subject to several risk factors that may affect the fund performance.

ATHAMUS
ATHAMUS

OfficeAddress:
#208,RegentPlaza
WhitefieldMainRoad,Whitefield
Bangalore560066
Karnataka,India
PhoneNumber:
Office:+918043000111
AshokKinha:+919591272000
VijayDhuler:+91 9900108825
Website:
www.athamus.in
www.athamus.com

ATHAMUS
AthamusVentureManagementFundsPrivateLtd.