Commercial Properties For Investment | PropReturns

    Participate in financing a performing residential project and earn high returns

    Pune

    Maharashtra

    High return, secured and fixed income investment opportunity backed by robust underlying project, being developed by one of the leading developers in Pune, and backed by strong financial partners.

    71% Funded

    Investment Capital

    Investment:

    (₹ 10,00,000)

    Interest Payment:

    ₹ 4,70,255

    Principal Repayment:

    ₹ 10,00,000

    Total Return:

    ₹ 4,70,255

    Minimum Investment

    ₹10 lacs

    Annual Return

    17%

    Multiple

    1.47x

    Interest Payment

    Quarterly

    Repaid over

    18 to 42 months

    Borrower Exp.

    30+ years

    Issue Size

    ~₹40 Crores

    Collateral

    ~3.4x

    Why Invest

    Partner participation: INR 4 Crores

    • Our partner Real Estate institution offering this investment is investing 10% of the total investment alongside you

    • Therefore, their interest is fully aligned with yours

    Experienced Real Estate Developer

    • 6MM+ SF/4,000+ homes delivered

    • Publicly Listed developer as sales and marketing partner

    • 3+ decades of real estate experience

    Superior Project Performance

    • Phase 1 (4 Towers) delivered and fully sold

    • Investment against Phase 2 in last 2 towers (E & F)

    • Tower E (~296K sf); ~47% already sold

    • Robust sales even during 2nd lock-down

    Robust Collateral / Clear Exit

    • Security of Tower E & F and a prime land (5.92 L sqft) valued at ~53 Crs.

    • Collateral estimated to be ~3.4x of loan principal

    Sound Credit History of Project

    • IDFC loan: ₹95 crores against project down to ₹16 crores just from phase 1

    • ASK Group: Made investment multiple of ~2.5x on their land stage investment in the project

    Great Locality: Baner

    • Premium residential & commercial hub

    • Close to Mumbai-Bengaluru Highway(NH4)

    Cashflows and Returns

    This is a sample investment calculation. Actual returns will change proportionally based on investment amount in the below multiples.

    Investment Capital
    Profit Amount₹ 4,70,255
    IRR17.0%
    Multiple1.46x
    Day 0Year 1Year 2Year 3Year 3.5Total

    Investment

    (7,69,235)

    (2,30,765)

    -

    -

    -

    (10,00,000)

    Interest Payment

    -

    1,02,878

    1,49,445

    1,59,006

    58,925

    4,70,255

    Principal Repayment

    -

    -

    1,00,000

    4,50,000

    4,50,000

    10,00,000

    Total Return

    (7,69,235)

    (1,27,887)

    2,49,445

    6,09,006

    5,08,295

    4,75,255

    Location

    • Project is situated in Baner, a prime well established residential locality

    • In close proximity to Hinjewadi, Pune’s 11MM sf western IT office corridor

    • Other residential neighborhoods nearby: Balewadi, Aundh, Pashan

    • Collateral Land is located in the prime residential neighborhood of Sindh Society

    The Developer/Borrower

    • Promoter has completed 4,000+ homes aggregating to 6MM+ Sqft

    • 3+ decades of experience

    • Promoter is the president of the Pune chapter of NAREDCO

    • Good credit history and low group debt levels

    • Project Marketed and sold by a publicly listed developer with market cap 2000+ Cr who has built 200MM+Sqft
    Other Projects

    Location: Ambegaon

    Year Completed: 2013

    Total GFA: 658K sf, 2/3 BHK apartments, ~2lakh sq. ft. of amenity, space, centralized, garden & club house

    Saleable Area: 1,093-1,514 sq. ft.

    Price: ₹ 65-80 Lacs

    Location: Undri

    Year Completed: 2012 Phase 1

    Total GFA: ~335K sq. ft., 1/1.5/2/3 BHK apartments

    Saleable Area: 361-1,476 sq. ft.

    Price: ₹ 1 Crore

    Location: Ambegaon

    Year Completed: 2011 Phase 1

    Total GFA: ~1 MM sq. ft., 2/3 BHK apartments, Bungalows & Villas. Inspired by Singaporean architectural style

    Saleable Area: 928-1,700 sq. ft.

    Price: ₹ 1 Cr (Apt.); ~₹ 4.5Cr (Villa)

    Location: Sant Nagar

    Year Completed: 2007

    Total GFA: 480K sq. ft. Located on Satara Road, offering excellent connectivity Premium 2/3BHK apartments

    Saleable Area: 1,000-1,500 sq. ft.

    Price: ₹ 1 Cr (Apt.); ~₹ 4.5Cr (Villa)

    Institution Track Record

    We have partnered up with an experienced real estate institution to provide this opportunity to our investors. The institution has the following track record:

    certus-logo
    $3.1 Billion+

    Value of deals done

    70+ Years

    Partner Team's Aggregate Experience

    18-33%

    Returns Delivered

    Project Overview

    • Premium, RERA registered residential development over ~7.6-acre land parcel
    • Spread across 6 towers of which 4 towers are fully sold & handed over
    • 200+ families have moved in
    • 5th tower (E) launched and is already ~47% sold
    • Project sales-to-date: ~5.3 lacs sf

    Security Cover

    • Collateral Cover of ~3.4x

    FAQs

    Is the 17% return fixed or variable?

    17% is fixed annual return (IRR): Servicing mechanism is as follows:

    • 12% p.a. is paid on a quarterly basis, from 1st quarter itself

    • Balance 5% is accrued and paid along with principal repayments starting from the 7th quarter

    When and how will principal be returned?

    • Principal repayments start in 7th quarter and ends by 13th quarter

    • Both principal and interest will be credited to the Investor’s demat account linked bank account

    What is the instrument/security I will get?

    • Investors will subscribe to secured Non-Convertible Debentures (NCD) issued by the Borrower

    • NCDs will be in demat form and will be credited to investor’s demat account

    Is there a risk of the project getting stuck-midway?

    • Project has 5+ years of demonstrated performance, with ~200+ families living in Phase I.

    • Material entitlements and approvals are in-place and balance are routine (verified through technical diligence).

    • In-place receivables and working capital from this investment materially cover balance cost-to-complete for Tower E. Investors fully exit from completion and sale of balance inventory in tower E.

    • Tower F and Collateral Land (estimated value between ~40 – 50 Crores) remain as additional back-up.

    • One of Pune’s most prominent listed developer is the marketing and sales partner.

    • Given all the above factors, it is very unlikely for the project to get stuck midway.

    Can a slowdown in market impact performance of my investment?

    • Over the last 15 months, Tower E sold about 1.39 lacs sf. In future, even if the sale is half of this at ~70, 000 sf pa, and prices stays stagnant, the investors should comfortably exit from Tower E cashflows alone, without even touching the other parts of security (Tower F and Sindh Society land).

    • Further, if future volume were to reduce to just 50,000 sf pa and prices drop from current levels by 5%, investors should still be paid in full from Tower E cashflows alone. Tower F (Area of ~295,000 sf+) and the collateral land (estimated value between ~40 – 50 crores) continue to remain as additional back-up.

    Is there any risk of cash leakages from the project?

    • Independent reference checks indicated high degree of integrity of the counter party

    • There will be two monitors appointed by the debenture trustee, one to oversee construction progress and other to monitor escrow accounts and business progress.

    • Any sale will require an NOC from debenture trustee; no NOCs to be granted below a minimum sale price checking any cash leakages.

    • All project inflows to be deposited in a debenture trustee-controlled escrow account.

    • Release from escrow account will based on independent project monitor’s review of development progress.

    Disclaimer:PropReturns is solely showcasing the above opportunity offered by our partners and are not responsible for any financial loss or otherwise.

    Min ₹ 10.00 L
    Project Financing