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)