Emerging Structures for Investments in Real Estate (Special focus on recent tax and regulatory developments)

 

Thursday, January 12, 2017

Registration: 4:15 PM TO 4:30 PM (IST)

Session: 4:30 PM TO 6:00 PM (IST)

VENUE: MUMBAI – BKC AUDITORIUM, NISHITH DESAI ASSOCIATES, 2ND FLOOR, 3, NORTH AVENUE, MAKER MAXITY, BANDRA-KURLA COMPLEX, MUMBAI – 400 051, INDIA

COCKTAILS: 6:00 PM TO 7:00 PM (IST)

VENUE: LIMA, MAKER MAXITY, BANDRA-KURLA COMPLEX, MUMBAI – 400 051, INDIA

PRELUDE

Real estate investment is witnessing a metamorphosis of sorts. While foreign investment restrictions in real estate were substantially deregulated November 2015, the sector did not see much investment as a result of it. Foreign investments in the sector were largely structured through debt instruments, which by nature could either be debt or equity oriented. Such debt investments despite their inherent advantages in terms of security creation gave limited comfort to the foreign investors due to lack of SARFAESI benefits, which were available hitherto only to banks and certain financial institutions. By a slew of recent measures, the Government has given more teeth to secured lenders, domestic or foreign, irrespective.

Steps have also been taken to sanitize the industry and bring it at par with international standards in terms of delivery, quality and commitments to benefit the end users. The Real Estate regulation Act, which has already been passed by the legislature and is likely to be implemented across several states by early next year is likely to give the necessary fillip to investor confidence to invest in real estate. While end users are likely to be benefitted, the investors need to carefully examine their financing arrangements with the developers in light of the 70% escrow provision and the close regulatory supervision over the real estate projects.

Most recently the India Singapore tax treaty was amended to be aligned with the India Mauritius tax treaty. As a result, gains on shares derived by a Singapore resident will now be taxable in India; However gains on securities other than shares will still be exempted from tax in India which galvanizes the need for efficacious structuring of the investment.

These initiatives, coupled with demonetization, are likely to have a significant bearing on the investment climate in the sector. We invite you to join us in discussions on some of these measures and their impact, particularly, from a foreign investment perspective. 

Focus Area

  • Impact of demonetization on Real Estate Sector.

  • Gearing up for implementation of the Real Estate Regulation Act. 

  • Foreign Portfolio Investment in unlisted bonds of real estate companies. 

  • Direct investment v. intermediate jurisdictions: Mauritius v. Singapore v. Netherlands. 

  • Fund raising: NBFC v. AIF v. NCDs – Regulatory and tax considerations.

  • REITS & Alternative Classes for Real Estate Investment. 

Speakers

Shobhit Agarwal

Managing Director, Capital Markets, Jones Lang LaSalle

Shobhit Agarwal is a Managing Director, Capital Markets for Jones Lang LaSalle India. Shobhit advises & structures real estate investment transactions on behalf of realty funds, institutional investors, family offices and developers. Shobhit manages investments in income generating properties, green-field & under construction development projects, distressed asset sales as well as restructuring corporate real estate portfolios. He also manages relationships at private and corporate levels with key customers and also oversees cross border flow of capital and fund raising for domestic & international funds in India.

Suresh Maramreddy

Managing Director, Apollo Global Management LLC

Mr. Maramreddy is responsible for sourcing, underwriting, executing and managing real estate investment transactions for Apollo Global Management in India. Mr. Maramreddy has over 17 years of experience in real estate private equity, portfolio analytics, strategy and research. His transaction experience in India includes executing deals in office, residential, serviced apartments and hotel assets.

Nishchal Joshipura

Head - Private Equity and M&A, Nishith Desai Associates

Nishchal Joshipura heads Mergers & Acquisitions and Private Equity Practice at Nishith Desai Associates. He is a Lawyer, Chartered Accountant and MBA.

He has led several high profile M&A and Private Equity deals and set up multiple offshore and domestic India focussed funds. He specializes in legal and tax structuring of complex cross-border transactions. He also advises major MNCs on Corporate & Securities laws, Transfer Pricing, International Taxation, Globalization, Structuring of Inbound/ Outbound Investments, Taxation of E-Commerce and Exchange Control Laws.

He has been “Highly Recommended” by various legal directories for legal and tax advice on M&A, Private Equity and Investment Funds. He has recently been nominated as a “Young Achiever” at the Legal Era Awards 2015 based on industry research, reviews, rating and surveys conducted by Legal Era.

Ruchir Sinha

Co-Head Private Equity and M&A, Nishith Desai Associates

Ruchir Sinha co-heads Private Equity and M&A Practice and heads the Real Estate and Structured Finance Practice at the firm. Ruchir has also been involved in several high profile PE / M&A transactions and has also extensively advised on setting up of several leading offshore funds and captive investment platforms. Apart from transactional advisory, he also focuses on cross border tax and regulatory advisory and developing pioneering structures.

He was nominated amongst the top 3 lawyers in India (under 35 category) at IDEX Legal Awards. Several of his transactions in structured finance and private equity have been nominated as Most Innovative by Financial Times, London in 2015 and 2016. He is also the recipient of the Scholarship of the International Bar Association for his paper on structured finance at the IBA Conference in Vancouver. Actively contributes to policy development for private equity and structured finance through international industry bodies, and was most recently involved in the drafting of the SEBI REITs Regulations.

Partners

 

ANREV is the Asian Association for Investors in non-listed real estate vehicles. ANREV is a not-for-profit organization driven by institutional investors in non-listed property funds. Our aim is to serve as a platform for investors who guide the association's strategy.

ANREV's agenda is driven by the members, in particular the investors, and is focused on improving transparency and accessibility of market information, promoting professionalism and best practices, sharing and spreading knowledge. Fund managers, investment banks, lawyers and other advisors provide support in addressing key issues facing the Asian non-listed private equity real estate fund markets.

ANREV is a sister organization to INREV in Europe and works with a number of associations across Asia Pacific and North America on research and professional standards.


APREA is a non-profit body that represents the real estate investment industry in the Asia-Pacific.

APREA and its partners help foster a more informed marketplace by provisioning better information to the investors and encourage greater professionalism by championing best practice.

APREA also provides its views to governments in order to help forge a more globally competitive real estate industry.

APREA has chapters in eight regions – China, Japan, India, Australia, Hong Kong, Singapore, the Philippines and Malaysia.


 

The Indian Private Equity and Venture Capital Association (IVCA) is the oldest, most influential and largest member-based national organization of its kind. It represents venture capital and private equity firms to promote the industry within India and overseas. It seeks to create a more favorable environment for private equity, venture capital investment and entrepreneurship. It is an influential forum representing the industry to governmental bodies and public authorities.

IVCA members include leading venture capital and private equity firms, institutional investors, banks, corporate advisers, accountants, lawyers and other service providers of the venture capital and private equity industry. These firms provide capital for seed ventures, early stage companies, later-stage expansion and growth equity for management buyouts/ buy-ins.

IVCA aims to support entrepreneurial activity and innovation as well as the development and maintenance of a private equity and venture capital industry that provides long term equity capital. It helps establish high standards of ethics, business conduct and professional competence. IVCA also serves as a powerful platform for investment funds to interact with each other.

The Association stimulates the promotion, research and analysis of private equity and venture capital in India, and facilitates contact with policy makers, research institutions, universities, trade associations and other relevant organizations. IVCA collects, circulates and disseminates commercial statistics and information related to the private equity & venture capital industry.