Walton Street Blacksoil Fund Makes Exits from Bollineni Group Projects

WSBREDF announced today that it has made an exit worth INR 202 crore across multiple investments with Krishnaiah Projects Private Limited (KPPL) a real estate arm of Bollineni Group. These investments were spread across multiple residential projects located in the southern metropolitan cities of Bangalore, Hyderabad, and Chennai. All these projects cater primarily to the mid-income segment situated in prime areas of their respective cities.

Commenting on the exit, Mr. Vimal Jangla on behalf of Walton Street Blacksoil (WSB) Fund said, “The southern real estate market has witnessed enormous growth in the past couple of years, owing to matured infrastructure and growth of IT/ITES, manufacturing, logistics and e-commerce businesses. The industrial growth coupled with excellent social infrastructure has supported the growth of residential real estate even during the pandemic. The underlying projects across these multiple investments with KPPL performed well ahead of their business plans exceeding our underwriting expectations both on the sales and construction front.

“We value and cherish the partnership with KPPL (Bollineni Group) and endeavor to take this partnership to the next level. We are already in discussions and evaluating multiple future investment opportunities with the group,” he added.

The Bollineni Group (BG) is a Hyderabad-based conglomerate having 15 years of experience and developed 3 mn sft in real estate development. Apart from this industry, the organization has business interests in other sectors such as infrastructure, steel, hospitals, and education. Founded by Mr. B. Krishnaiah and B. Seenaiah, the company has over 50 years of experience in the infrastructure industry.

“The association with Walton Street Blacksoil (WSB) has been excellent in these past years. The Fund’s in-depth knowledge of the business of real estate has definitely been a key asset for our organization,” said Mr. TV Manjunath, CEO of the KPPL.

“Our relationship with Walton Street Blacksoil (WSB) Fund has been instrumental in accelerating the growth of our residential real estate portfolio in the past 5 years. Their collaborative approach has been instrumental in managing our projects through tough times such as the NBFC crisis and the constraints related to the pandemic,” said Mr. Bollineni Krishnaiah, Chairman of the Bollineni Group.

About WSB

Since 2013-14, and prior to the launch of WSBREDF-II, WSB group has placed more than INR 1,750 crores of debt capital across 40+ real estate transactions and has received more than 100% of its capital back through 29 full and 5 partial exits. Last year, BlackSoil and the former India-based management team of U.S. real estate investment advisor Walton Street Capital, L.L.C. (Walton Street Capital) joined forces to acquire Walton Street capital’s India real estate debt business. The India management team is led by Kaushik Desai, Vinit Prabhugaonkar, and Vimal Jangla. As a result of the buyout, WSBREDF-II is no longer affiliated with or advised by affiliates of Walton Street Capital, L.L.C., a U.S.-registered investment advisor focused on the real estate sector.

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