Arriving at the Fair Market Valuation of a Real Estate Fund for Compliance purposes

Our client, a leading India focused real estate fund (Client) backed by one of the U.S.’s largest banks, makes investments in commercial and residential properties across several metropolitan cities in joint partnership with major developers across India.

Investments are made through a plethora of Special Purpose Vehicle (SPV) by equity or quasi-equity instruments such as Compulsorily Convertible Debentures (CCDs), Compulsorily Convertible Preference Shares (CCPSs), and more.

For its several investments across India, Nexdigm was retained to conduct a fair valuation of the investments in Residential, Commercial & Hospitality projects.

After reconciling the valuations under the various methods, Nexdigm concluded that the CCM method using the EV to Stabilized GMV multiple was most suitable to arrive at the fair market value. We presented our findings along with the valuation conclusion to the Client in a detailed valuation report.

Nexdigm’s passion, commitment and innovation, enabled us to develop a strong partnership with the Client based on trust and reliability.