Kalpataru Group Secures ₹525 Crore Debt for Mumbai Residential Towers

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    A Kalpataru group affiliate has secured ₹525 crore in debt financing from global investment firm PAG. The purpose? Completing construction on ten residential towers in a Mumbai suburb, a move revealed by informed sources.

    Under PAG’s management, the Asia Pragati Strategic Investment Fund provided this financing in two stages as non-convertible debentures (NCD), offering an 18.75% internal rate of return (IRR), as per these sources. Alder Residency, a wholly owned subsidiary of Abhiruchi Orchards and part of Kalpataru, received these debt facilities from PAG.

    In November, the Asia Pragati Strategic Investment Fund invested ₹475 crore in secured unlisted bonds and an additional ₹49 crore in secured listed bonds, both maturing on April 30, 2027.

    These bond proceeds aim to repay high-cost debts and contribute to the development of the Kalpataru Vivant project, comprising ten towers in Mumbai’s suburbs. Sources estimate the project cost between ₹750-800 crore.

    In October, Alder Residency’s board passed a resolution to raise ₹620 crore through NCD. Promoter Parag Munot offered a personal guarantee, and Abhiruchi Orchards provided a corporate guarantee to PAG against funds raised by Alder Residency. The fund secured a primary charge on the property’s registered mortgage and development rights.

    According to India Ratings, as of June 2023, Alder Residency incurred about 24% of the overall development cost, covering 10% of the construction expenses.

    Reportedly, management assured the rating agency of approvals for eight towers, with construction progressing to the third floor for the remaining two towers by September 2023.

    (Source: ET Realty)

    Also read: DLF Launches Commercial & Residential Projects in Gurugram and Panchkula, Haryana

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