A company affiliated with the Kalpataru Group has successfully raised Rs 525 crore in debt facilities from PAG, a global alternative investment firm, to accelerate the completion of its 10 residential towers in the Mumbai suburb, according to sources familiar with the matter. The funds, provided by Asia Pragati Strategic Investment Fund, a PAG-managed entity, were issued in two tranches as non-convertible debentures (NCD) and carry an internal rate of return (IRR) of 18.75%.
The recipient of the debt facilities is Alder Residency, a wholly-owned subsidiary of Abhiruchi Orchards, itself a wholly-owned company of Kalpataru. PAG Asia and Kalpataru declined to comment on the development.
In November, Asia Pragati Strategic Investment Fund invested Rs 475 crore in secured unlisted bonds and an additional Rs 49 crore in secured listed bonds, both maturing on April 30, 2027. The proceeds from these bonds will be utilized to retire high-cost debt and advance the residential project Kalpataru Vivant, consisting of ten towers in Mumbai suburbs, with an estimated project cost ranging between Rs 750-800 crore, as per sources.
In October, the board of Alder Residency passed a resolution to raise Rs 620 crore through NCD. Promoter Parag Munot has provided a personal guarantee, while Abhiruchi Orchards has extended a corporate guarantee to PAG against the funds raised by Alder Residency. Additionally, the fund holds a first-rank exclusive charge on the registered mortgage and development rights of the property.
India Ratings revealed that as of June 2023, Alder Residency had incurred approximately 24% of the overall development cost, inclusive of 10% of the total construction cost for the project. Management has confirmed securing all approvals for eight towers, with the third floor of the remaining two towers expected to be completed by the end of September 2023.