Real estate-dedicated firm to focus on capital markets, corporate finance, hotels and hospitality, land and warehousing and logistics
Shobhit Agarwal, ex-Managing Director-Capital Markets & International Director of JLL Property Consultants (India), has launched ANB Capital Advisors. The firm, headquartered in Mumbai, will focus exclusively on various asset classes of real estate. Agarwal heads a team of highly experienced real estate investment banking advisors with average 18-20 years of experience in structuring and executing both simple and complex transactions.
Already actively involved in several big-ticket deals, ANB Capital Advisors undertakes transactions under the ambit of investment banking business in the real estate industry. The key focus is on capital markets, corporate finance, hotels and hospitality, land, and warehousing and logistics across India. The firm works with developers, landowners, capital providers including private equity funds, banks, insurance companies and financial institutions.
"The capital requirements in Indian real estate are immense," says Shobhit Agarwal, Managing Director & CEO, ANB Capital Advisors. "To give a perspective, India still has a shortage of 18 million homes that requires US$ 330 billion of construction funding. The existing gross bank credit to the sector is less than US$ 55 billion. If we consider the larger sector beyond residential, the capital infusion requirements are virtually limitless."
"Indian real estate is metamorphosing into a highly transparent industry into which all large global funds will want to enter aggressively," he says. "Intermediary services in this space are very thin on the ground, and there is considerable scope for organised professional advisors. The launch of ANB Capital Advisors could not be better-timed, given the high deal flows in residential and office real estate."
Commenting on the prevailing funding scenario in the Indian real estate sector, Agarwal says, "Quality office assets available at attractive valuations currently attract the majority of equity investments. Residential will continue to look for financing options till equity investors focus more on this sector. In the GST era, there is also a lot of interest in warehousing and logistics. 2017 saw more than US$ 4.2 billion of investments flowing into real estate, missing 2016 investments by a whisker. 2018 will be equally good - and if REITs launch this year, we can certainly surpass the 2016 numbers with room to spare."
While there is equity and debt capital available, in most cases developers and funding avenues cannot connect with each other due to lack of resources, connections and intent. Developers need services that precisely understand capital providers’ needs, while capital providers look for trustworthy intermediaries. ANB Capital Advisors brings to the table its strong connections and trust, enabling it to close almost all deals that pass the necessary due diligence.
The firm's strong relationships with both developers and capital providers have been created and nurtured through sustained efforts of its key members over their professional life. Shobhit Agarwal himself has over 18 years of experience in the property finance and investment sector and has overseen several major cross-border real estate transactions. He and his team are highly experienced in structuring joint ventures, equity raising, debt advisory and advising on disposals and acquisitions in core markets.