Bangalore based venture, ArisUnitern, provides end to end operational and real solutions to real estate fraternity that helps completion of projects in time. ArisUnitern also provides financial advisory services, investment banking services, working capital funding, high power sales force, and access to construction materials in a seamless manner.
Navin Dhanuka MD & CEO of ArisUnitern , who has managed over $ 2 billion across 100+ transactions across the capital stack of debt, mezzanine, and equity investments, speaks to Realty & More and shares his vision for the future –
1. How has ArisUnitern’s journey been so far?
We have had a successful journey in the last three years. As a group, we have grown from a 6-member team to over 180 employees across four offices with Rs 950 Cr in financial achievements. We have recently acquired a sales expert company, enhancing our capabilities in real estate development, and strengthened our offerings to cover the critical elements of Money, Material, and Management. With a tie-up and line of credit of 250 crores, we provide comprehensive support to developers, including funding, raw materials, resources, and a flexible line of credit. We are coming up with our own Cat II Alternative Investment Fund (AIF) worth Rs. 350 crores. Through our parent company, Arisinfra.one, we offer cost-effective materials, timely delivery, and flexible credit options. As a company, we have been profitable from day one. These achievements position us for continued growth and success in the real estate industry.
2. What is the development management model? What is its future in India?
The Development Management Model is a collaborative approach where major developers join forces with regional players to mitigate financial risks, efficiently manage the development cycle, and exchange expertise to maximize project potential. This model relies on Development Management Agreements (DMAs) to formalize partnerships. While this concept is widely adopted in the West, in India it is still in the nascent stages of its implementation. With increasing acceptance and adoption, along with more favourable laws, the development management model has the potential to gain a stronger foothold in the country. This will open broader opportunities for development and better protection of service providers’ interests.
3. What are some benefits that relatively smaller developers and landowners stand to gain by associating with a DM like ArisUnitern?
The advantages of partnering with a Development Management (DM) company like ArisUnitern are many. As the first of its kind professionally run DM company in South India, we offer comprehensive development solutions in the Real Estate sector, including access to capital, materials, and a pool of talented professionals across all areas. This enables smaller developers and landowners to leverage our expertise for their projects, ensuring a holistic approach. Besides, the association will also expose them to a positive funding environment, advanced project management and planning, allowing them to optimize their resources effectively. Our aim is to collaborate with the developers in the entire development cycle to unlock full project potential while safeguarding their brand identity.
4. Your take on Government taking active interest and appointing a committee to look into stalled housing projects?
I think it is a commendable move by the Ministry of Housing & Urban Affairs to set up a 14-member committee to create an actionable roadmap. Stalled projects not only affect the homebuyers but also have broader implications for the Real Estate sector and the economy. The committee headed by Amitabh Kant has been entrusted with the responsibility of identifying strategies to successfully complete stalled housing projects and ensure timely handover to homebuyers. By addressing underlying issues and promoting collaboration, this initiative will establish a conducive environment, instill confidence, and foster a healthier and more sustainable industry.
Additionally, this initiative allows national players to utilize their expertise through the Development Management (DM) model, promoting seamless integration of skills and resources. This leads to a more structured and efficient approach to project development, unlocking opportunities for collaboration and innovation within the industry.
5. What, according to you, can be a few significant changes that the RE industry might undergo in the next 5 years?
Firstly, the Real Estate sector will witness increased maturity in terms of structure, transparency, and discipline. While significant progress has already been made with the implementation of RERA, proactive policies, a promising business environment and a robust investor ecosystem will further boost confidence and support the industry’s growth.
Sustainability is another factor that is driving the industry. In the future, builders and developers will need to prioritize sustainability and environmental, social, and governance (ESG) factors to ensure the relevance of their assets. With a global inclination towards compliant buildings and properties, the industry must place significant emphasis on sustainability to meet evolving demands.
Thirdly, technology will be a major catalyst in transforming the Real Estate industry. The entire customer experience cycle is shifting towards AI and this shift will significantly impact the future of RE. Project management and construction technologies will eventually transform the way buildings are constructed.
6. What are your future business and growth plans?
Currently we are doing DM projects of around a million Sq. Ft. However, our primary areas of focus are plotted developments and bungalows and the total acreage is quite good. We now possess the complete capability to offer developers funding, raw materials, resources, and a flexible line of credit, providing comprehensive support for their projects.
Our aim is to secure sales mandates worth Rs. 2,000 crores, while finalizing the development of 1.5 million sq. ft. within the next 4-5 months. With a strong foundation, expanded capabilities, and a commitment to excellence, we are well positioned to continue delivering exceptional results in the months to come.
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