A Kalpataru group company has raised ₹525 crore debt facilities from PAG, a global alternative investment firm, for a term of 3.5 years to complete the construction of its 10 residential towers in the Mumbai suburb, said people aware of the development.
Asia Pragati Strategic Investment Fund, managed by PAG, extended the debt facilities in two tranches through non-convertible debentures (NCD). The funding was secured at an internal rate of return (IRR) of 18.75%.
PAG extended debt facilities to Alder Residency, a wholly owned subsidiary of Abhiruchi Orchards, which is itself a wholly owned company of Kalpataru.
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 sets of bonds are set to mature on April 30, 2027.
The funds raised from these bonds will be utilized to retire high-cost debt and progress with the development of the residential project Kalpataru Vivant, consisting of ten towers in the Mumbai suburbs. The estimated cost of the project is ₹750-800 crore, according to one of the sources.
In October, the board of Alder Residency approved a resolution to raise ₹620 crore through Non-Convertible Debentures (NCD), as per the information provided.
Parag Munot, the promoter, has provided a personal guarantee, and Abhiruchi Orchards has furnished a corporate guarantee to PAG in connection with the funds raised by Alder Residency. Additionally, the fund holds a primary and exclusive charge on the registered mortgage and development rights of the property.
According to a statement from India Ratings, as of June 2023, Alder Residency had utilized approximately 24% of the total development cost, which includes 10% of the overall construction cost for the project. The management reported to the rating company that all necessary approvals for the eight towers and the third floor of the remaining two towers were obtained by the end of September 2023.
