Interups Inc. and CNP launch Bharatham Hospitality- India’s First Hospitality REITS
Bangalore, 26th July, 2017: Interups Inc., a US based Public Company (ITUP) and CNP Business Advisory Services Pvt. Ltd. (CNP), the sole Indian Investment Manager (IM) for SEBI registered Next Orbit Ventures Fund I & II (NOVF) have signed a Joint Venture to launch India’s first Hospitality Real Estate Investment Trust (REIT) – Bharatham Hospitality REIT. NOVF will be the Primary Sponsor Applicant to the REITthrough its investments in Hospitality Venture Undertaking from its Real Estate Scheme. The Hospitality REIT size will be around Rs. 1000 Crores.
The joint venture effort is to acquirefinanciallystressed but operationallyviable hospitality assets,either directly into theREIT or through SPVs, and leased out to a professionally run Project ManagementCompany.
The REIT is expected to introduceavery dynamically structured financial instrument to the market with a basket offixed and variable income instruments to be generated from leasing ofproperties,assetoperationsand market investments out of Liquidity Reserves.
The entire sponsor investment is pre-seededcourtesy the joint efforts of ITUP, NOVF, Boston based Argonaut Global, Investat Source, BNM and Calissa Ventures. Rajani Associates, J SagarAssociates andJerome & Merchant Partners are advising legal counsel.Theregulatory filingis contemplated in the next 90 days keeping the IPO date around January of 2018.
Ajay Jalan, Founder of CNP, who hadseveral firsts to his credit, commented, “The proposal is fast progressing withmost of the intermediaries engaged to support, execute and setup the REIT, SPVsand the Project Management Company. This joint venture promotion of HospitalityREIT with Interups will be another first from NOVF. It will offera clear turnaroundto theHospitality sector by REIT’s initiative to acquire and lease viable andoperational assets to professionally run management groups and in exchange fora balanced income dividendto the benefit of the investor of NOVF.”
Laxmi Prasad, majority shareholder& CFO of Interups added, “ITUP broadly serves as a link between capitalpools in the US with growth opportunities in India. There is a unique pool ofregulated self-directed retirement assets from US Markets, which seeks suchlowrisk long-term growth opportunities worldwide. ITUPhas access to these fundsand will pool them through specially structured and regulated/exemptedinvestment vehicles and invest into the REIT& NOVF.”