01 The Deal
|Address||Kalpataru Paramount, Thane||Kalpataru Elitus & Platina, Mulund|
|Property Type||Residential||Mixed Use|
|NLA (sqm)||~850,000 sq.ft.||~750,000 sq.ft.|
|Existing Lender||Standard Chartered Bank||Inter-Company Debt from Parent Company|
|Existing Debt||INR 242 Crores||INR 210 Crores|
|New Lender||Asia Pragati Strategic Investment Fund (Hong Kong based alternative asset manager)|
|New Debt||INR 792 Crores|
|Deal Structure||Refinance of Existing loans plus construction finance thereby issuing secured NCD’s|
02 The Challenge
2020 was one of the most volatile year for real estate where the residential market which was already struggling for survival was forced to deal with the collapsed demand in the residential demand due the lockdown in the entire country and this led to a financial struggle across developers. Various boosters given by the central government and more prominently the Maharashtra government by reduction in stamp duty till Mar 2021 revived the sector significantly resulting is situations normalizing among the fraternity.
However, the rising number of cases in the country and the resultant lockdowns in some cities, started to jeopardise the recovery path of the sector resulting in the requirement of liquidity for survival. The Group had repayments due for which they needed liquidity in a shorter time frame and hence, a bridge financing solution.
03 The Solution
Cushman & Wakefield was appointed as a sole agency to achieve a financial closure for the projects. Cushman & Wakefield leveraged Kalpataru group credentials with Asia Pragati Group to secure maximum quantum thereby achieving a closure within three months
04 The Result
This is one of the largest structured financing transactions concluded in residential real estate in 2021 in India in record time of less than three months
Consultants said this deal assumes significance given the overall liquidity squeeze faced by developers as well as NBFCs.