Finance - Case Collection

Finance Panchkula Information Technology Park

The Haryana Urban Development Authority (HUDA) had invited proposals for developing an Information Technology (IT) Park near the township of Panchkula in northern India. Sreeni Iyer, a partner at AMII Advisors, was considering a bid for this project in partnership with LIRA Developers, a public company. The fact that the Haryana state government had initiated this project suggested that regulatory approvals would not be a hurdle. However, the exit price and exit options needed to be carefully assessed by Iyer and his team.

Learning Objectives

The pedagogical objectives of the case are to

Understand the determinants of risk and return in commercial real estate,
Understand how capitalization rates are used to determine the value of commercial real estate projects and
Understand how an exit decision is complicated by a partnership with a developer.

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Karan Bhanot,

Shridhar Sethuram

Published: Nov 26, 2023

₹399.00

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Finance Wagholi Apartment Project: Restructuring a Private Equity Investment in Real Estate

This case is written from the perspective of a decision-maker at a private equity investment fund. The case is set in India, where a large corpus of capital sourced from the United States was deployed from the early 2000s onwards. It looks at the manner in which a private equity real estate fund evaluates the implications of RERA in India, in particular, the continuation vs. exit decision when a project encounters obstacles that delay its completion.

Learning Objective

To understand how the regulatory framework interacts with execution risks to amplify the risk profile of a real estate project; and
To understand how RERA alters the costs associated with the choice set faced by investors when a project faces impediments that delay its completion.

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Karan Bhanot,

Shridhar Sethuram

Published: Jun 9, 2021

₹399.00

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Finance Rising Sun Towers: Private Equity Investment in Residential Real Estate

In December 2010, Shridhar Sethuram was evaluating an investment in a joint development of residential flats in Gachibowli, an information and technology (IT) hub near the city of Hyderabad in central India. Sethuram and his team at AMII Advisors, a private equity (PE) investment firm, had recently raised US$170 million with a mandate to invest the funds in the real estate market in India. Sethuram, on behalf of his investment firm, had to decide whether to invest in the Gachibowli project and how to structure the investment deal. This case is written from the perspective of a decision maker at a private equity investment fund. It provides a look at the manner in which a private equity real estate fund evaluates an opportunity and structures a real estate investment in a developing country. The case is set in India, where a large corpus of capital sourced from the US has been deployed since the early 2000s.

Learning Objective

The case explores the rationale for international investment and typical issues that arise when dealing with developers. Students assess the rationale for the investment the case protagonist is considering, the risks associated with the project, the potential returns to investors, and the structure of the investment.

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Karan Bhanot

Published: Sep 15, 2019

₹399.00

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