WHAT ARE THE COMPANY'S SERVICE OFFERINGS FOR THE REALTY SECTOR?
Srinivasan - Unitern Advisors has been incorporated with the sole purpose of providing end to end operational solutions to Real Estate Developers that help them complete projects on time. This includes, a complete health check of the company, identify areas for improvement and work with the promoters to resolve issues.
Navin - We have strategic investments / Joint Ventures / tie ups which help us provide financial advisory services, provide working capital funding (construction finance), provide construction materials cheaper and with longer credit period, offer barter contracts and have a high power sales force to liquidate stock. Apart from that, we assist large and medium scale developers identify right partners for their projects / land either on a JV, JDA or outright basis.
WHAT ARE THE NEW INVESTMENT TRENDS THAT HAVE EMERGED IN THE PAST 2-3 YEARS?
Srinivasan - With over 5 years of stress in the market, we have seen the AIF structure being extremely popular. Apart from that, we have also seen the LIFO method of funding-Funds whose main focus is to do the last mile funding and to exit first prior to the existing lender.
Navin - SWAMIH fund by far is an amazing initiative by the government and helps not only with last mile funding, but also satisfies a social cause for home buyers in stuck projects. The ECLGS, guarantee scheme of the Government has become very popular amongst the SME real estate projects. FDIs in real estate is at its peak as of now. The Residential market is attracting a lot of funds due to a buoyancy in the market across the country. Also the quality of developers have improved for lending / equity partnership.
IN WHAT WAYS IS THE COMPANY ENABLING DEVELOPERS TO BUILD STRATEGIC BUSINESS MODELS?
Srinivasan - Our motto is to help developer’s complete projects. Through our extensive operational and financial expertise, we are able to provide Unique operational solutions to developers and the uniqueness is also that, Unitern actually implements these solutions. Solutions could be finance related, or ideation and implementing liquidity events, or forging JDs, JVs, renegotiating with Land owners, JV partners, and financial institutions.
Navin - Our solutions also revolve around optimal working capital management and concentrating on cheapest source of finance - being sales. Through our partners, we believe in “Intensive selling” to generate the necessary cash flows to enable accelerated loan repayment and speedy construction.
WHAT ARE THE GROWTH AND EXPANSION PLANS FOR THE COMPANY IN THE YEAR 2022?
Srinivasan - We have aggressive growth plans and are in advance talks to bring in strategic investments by seasoned veteran investors. We will be using technology to the maximum in the field of supply chain management for construction materials and Proptech. Our Consultancy role, gives the human touch in assessing and analysing issues.
Navin - We are 18 months old and we participate on every aspect of real estate business cycle, except approvals. We will concentrate on few clients but get deeply involved in their business to deliver value at each stage. Our Development management division will deliver projects.
We have recently formed a Development management Division and will be launching our first project in Chennai next quarter. This division will now also help developers in executing projects. Navin Dhanuka
We plan to grow 50% annually over the next 3 years. This is possible now, as our base is very small. We are also in the process of forming an NBFC and AIF. Srinivasan Gopalan
