SUN-Apollo Ventures Limited is pleased to announce the closing of the $630 million SUN-Apollo India Real Estate Fund LLC, which will pursue real estate development and investment opportunities in India. SUN-Apollo Ventures is a joint venture between the SUN Group, a leading Indian business and investment group principally owned by the Khemka family with operations predominantly focused on India and the countries of the Former Soviet Union (“FSU”), and Apollo Real Estate Advisors, one of the most active global real estate investors and fund managers.
The Fund was launched in April 2006 and had its first closing in August. Investors include leading US, European and Middle Eastern institutional investors, multilateral agencies and high net worth individuals.
The dramatic growth in India's economy is generating significant demand for all forms of real estate, ranging from offices to shopping centres to residential developments to hospitality well in excess of existing supply.
The Advisory Team for the Fund’s investments comprises an expert local team based in Mumbai led by Managing Director Chetan Davé, who has more than 17 years of experience in the real estate industry. Mr Davé was formerly Chief Investment Officer and Head of Development for Transwestern in Houston, Texas prior to which he was a Principal in the real estate group of J.P. Morgan Partners in New York. The Advisory Team will leverage Apollo’s substantial emerging market and property development expertise and SUN’s extensive Indian and international business experience and network.
The Fund has at this early stage achieved a strong and robust pipeline and has already closed a transaction to develop a mixed-use IT park of over 5 million sq ft on a prime site of 58 acres in Chennai.
William Benjamin, Managing Director of Apollo’s European operations headquartered in London states:
“The joint venture with SUN in India is an important part of our growth strategy. We are committed to building an enduring and first class franchise. Apollo has a history of being a successful pioneer in emerging markets as our experience in Central and Eastern Europe has shown. The Indian real estate story is hugely exciting and we look forward to the challenges ahead.”
Apollo has an extensive and successful development track record with projects that include the 2.8 million sq ft Time Warner Centre in New York, the 550,000 sq ft Southside Shopping Centre in London and the recently opened 250,000 sq ft Shopping-Cité in Baden-Baden, Germany. Apollo’s current development and investment portfolio includes projects in the Czech Republic, France, Germany, Poland, Romania, Russia, Spain, the United Kingdom and the United States.
Uday Khemka, Vice-Chairman of the SUN Group, commented:
“We are delighted to be partners with Apollo. The Khemka family have been operating throughout India for over 100 years and SUN is extremely positive about the prospects ahead. We believe the Fund to be uniquely well-positioned, in terms of both the high calibre of its Advisory Team and the strength and depth of its sponsor support. ”
SUN is principally owned by the Khemka family. It has a long and successful track record of operating and investing in businesses spanning a variety of sectors across multiple jurisdictions with a particular focus on India and the countries of the FSU. SUN’s private equity experience has included the establishment of SUN Brewing/SUN Interbrew from 1993 to 2005, which SUN developed and grew into the twelfth largest beer company in the world.
Chetan Davé, Managing Director of SUN-Apollo said:
“I have long believed that the Indian real estate sector has strong fundamentals and the potential to offer attractive risk-adjusted returns. The SUN and Apollo partnership combines the complementary strengths of both groups to form a powerful platform, along with the Advisory Team’s in-market experience and network, to generate the most interesting opportunities for the Fund. Our real estate experience, value-added partnership approach, a multi-disciplinary team and quality of our investors sets us apart from our competitors.”
Credit Suisse acted as placement agent and Debevoise & Plimpton LLP acted as legal advisor to the Fund.
Notes to editors:
Since the firm’s founding in 1993, Apollo has overseen the establishment of 16 real estate funds and joint ventures totalling approximately $8.8 billion in equity commitments for investment primarily in the United States, Europe, India, and to a lesser extent, Japan. The Apollo funds have collectively invested in over 400 transactions with an aggregate value in excess of $30 billion. Apollo specialises in investing in under-managed and under-valued properties in major urban areas, which offer opportunities for the firm to enhance value through its operational and financial management expertise. Apollo is a “bottom-up” real estate investor with significant development and turn-around expertise. Apollo is recognised as an early mover and a leading investor in the emerging markets of Central and Eastern Europe, including Poland, the Czech Republic, Hungary and Romania. In addition, Apollo has a successful and growing mezzanine finance business. Apollo’s investors include some of the largest and most well regarded institutional and high net worth investors from the United States, Europe, Middle East and Australia.
SUN is principally owned by the Khemka family, who have been operating throughout India for more than 100 years and have in-depth experience in a variety of sectors, including mining, oil and gas, infrastructure, and investment management. SUN’s investment and private equity experience includes completing direct investments in operating companies as well as sponsoring focused fund franchises in its core markets of India and the FSU. Through its activities in India, SUN and the Khemka family have developed an established Indian business network and an extensive operating and investing platform throughout India. SUN’s private equity experience has included the establishment of SUN Brewing/SUN Interbrew from 1993 to 2005, which SUN developed and grew into the twelfth largest beer company in the world. This investment was successfully realised through an exchange for a significant stake in InBev, the world’s largest brewer. SUN was also instrumental in the formation of WestBridge Capital Partners (renamed Sequoia India Capital after the merger with Sequoia Capital), one of India’s leading venture capital firms focused on technology investments in India and the United States. Sequoia Capital India’s investors include numerous international institutions, primarily from the United States.
Chetan K. Davé, Managing Director. Mr Davé has over 17 years of experience in the real estate industry. From 2004 to 2006, he was Chief Investment Officer and Head of Development for Transwestern Commercial Services LLC, a privately held national commercial real estate firm in the United States. From 1997 to 2004, he was with J.P. Morgan Partners (formerly Chase Capital Partners) in New York. He was involved in real estate investments, developments and joint ventures throughout the United States across major property types. From 1989 to 1995, Mr Davé was a practising architect with design and management responsibilities for several institutional and commercial projects in the eastern United States. Mr Davé received an MBA from Columbia Business School, New York, Masters degree in Architecture and Urban Design from Washington University, St. Louis and Diploma in Architecture from CEPT, Ahmedabad, India. He is a member of Urban Land Institute.
William S. Benjamin, Managing Director – Europe. Mr. Benjamin has been associated with Apollo since 1995 and established the London office in 2000. He has been the primary director of Apollo’s European activities since their commencement in 1995. He serves on the Investment Committee of the Fund. From 1986 to 1995, Mr Benjamin was with the Real Estate Finance Group of Bankers Trust of New York Corp., where he was responsible for the origination, structuring and execution of real estate investment banking transactions. Mr. Benjamin graduated magna cum laude with a BA from Harvard College and received an MBA from the University of Pennsylvania’s Wharton School of Business.
Uday Khemka, Vice Chairman. Mr. Khemka has over 17 years of investment and entrepreneurial experience. He began his career at Credit Suisse First Boston in its capital markets group in London focusing on India, and with Morgan Stanley in its mergers and acquisitions area in London and New York. He subsequently established and led Morgan Stanley’s investment banking activities in India. Since 1995, he has led SUN’s investment management activities and the creation of focused fund franchises in SUN’s core markets. This has included making principal investments into a variety of early- and mid-stage companies, as well as helping establish private equity firms such as SUN Capital Partners and WestBridge Capital Partners. He is on the Board of Governors of the Indian School of Business (ISB) and has been elected a Young Global Leader at the World Economic Forum in Davos. He received his undergraduate degree at Cambridge University and received an MBA from Harvard Business School (Baker Scholar).