A. The ULJK Group, established in 1903, is one of India's leading Financial Institutions. We are symbiotically intertwined with the history of the Bombay Stock exchange (BSE), as well as the National Stock Exchanges (NSE) in India.
2. ULJK’s foray into real estate.
A. ULJK's Real Estate group provides funding and advisory services to a range of organizations that buy, sell and develop land. These include land developers, commercial and retail property developers as well as hotels and infrastructure companies. The group has sector expertise in retail properties, hotels, shopping centers, office buildings, townships, industrial properties, multifamily properties and slum rehabilitation projects.
3. What are our product offerings?
A. Our offerings include structured debt, NCD's, OCD's, mezzanine debt, private equity and hybrid products.
4. What is the minimum ticket size?
A. Our team usually looks at deals that range in between INR 25 crores to INR 1500 crores (USD $5 Million- USD $300 Million).
5. What is role of ULJK?
A. Our role would be as advisor, consultant and investment banker. Our services include preparing pitch documents, introduction to investors, taking company on roadshow, negotiation of terms, etc.
6. What are ULJK’s advisory fees?
A. 2.5% to 5% of transaction value depending upon transaction.Fees would always be payable after sanction letter prior to disbursement of funds.
7. What is the expected rate of interest that ULJK can organize?
A. Interest rates can range between 10% - 20% per annum depending upon the market situation (from our fund and NBFC clients).If projects can be funded by banks interest rates maybe lower that 10%.
8. What are the possible usages of funds for the developer?
A. The purpose of usage of funds can range from pure construction to cash outs for various purposes including the purchase of floor space index (FSI) and/or transfer development rights (TDR) and land acquisition in selected cases.
9. Why ULJK?
A. ULJK has had decades of experience and strong relationships with financial institutions. We are a one stop shop for a builder’s financial requirements. Our rolodex gives instant access to over 100++ real estate focused investors saving the developer months of unnecessary leg work.
10. What are the past investments ULJK has been advisor to?
A. ULJK has concluded and disbursed over INR 700 crores ++ worth of deals in the real estate sectors in FY 2016.
11. Who are ULJK’s associates?
A. Our associates include private equity fund, FII’s, NBFC’S, hedge funds, mutual funds and banks.
12. How ULJK can help in case of bankruptcy
A. We cannot deal with you in case of bankruptcy
13. Is ULJK ready for Joint Venture?
A. No.But we can find you an appropriate partner to do a joint venture, joint development, developer management, etc through our large rolodex of clients (Developers).
14. Can ULJK do co-development?
15. What is the timeline for deal to conclude from start to finish?
A. Minimum 35 days upwards all depend upon flow of documentation, due diligence and legal.
16. What can ULJK’s clients accept as security or collateral for debt?
A. Our clients can accept the following as collateral: Land (Non-Agricultural), Apartments & Buildings, Lease rental discounting and future cash flows from existing and upcoming projects.
17. What are the lending criteria for the projects?
A. Preferred lending will be to developers who have all permissions in place for example (IOD, CC, etc.) Builder should have delivered 100,000 square feet to end consumers.
18. Who will do the due diligence and legal.
A. Third parties as agreed upon by the Lender and Developers.
19. What will be the cost of due diligence and legal?
A. Costs would be INR 3 lacs upwards for due diligence (DD) and upwards of INR 5 lacs for legal depending upon comfort level of the investor and the developer with the legal or DD firm. All billing will be on actual billing payable directly to third parties. ULJK does not have any commissions from these parties.