  Underlay device-to-device (D2D) multicast communication has potential to
improve performance of cellular networks. However, co-channel interference
among cellular users (CUs) and D2D multicast groups (MGs) limits the gains of
such communication. Allowing the CUs to have exclusion zones around them where
no receiver of any MG can exist, is a realistic and pragmatic approach to
reduce the co-channel interference of cellular transmission on D2D multicast
reception. We use a stochastic geometry based approach to model this scenario.
Specifically, we model the locations of CUs and D2D MG receivers with
homogeneous Poisson Point Process (PPP), and Poisson Hole Process (PHP),
respectively. We formulate the network sum throughput maximization problem in
terms of a joint MG channel and power allocation problem with constraints on
cellular and MG users maximum transmit and acceptable quality of service. We
establish that the MG channel allocation problem has computational complexity
that is exponential in both, the number of MGs and the number of available
cellular channels. Then, we decompose this problem into two subproblems: subset
selection problem and subset channel assignment problem. Based on observations
and insights obtained from numerical analysis of the optimal solution of the
subset selection problem in wide variety of scenarios, we propose a
computationally efficient scheme that achieves almost optimal performance for
the subset selection problem. We further provide a computationally efficient
algorithm that achieves almost optimal performance for the subset channel
assignment problem. Finally, combining these two schemes, we provide a
computationally efficient and almost optimal scheme to solve the channel
allocation problem, and various results and insights on the variation of the
optimal system performance with respect to different system parameters
