The Client: In 2023, a prominent real estate developer based in Maharashtra, specializing in residential and commercial projects, approached our financial advisory firm seeking assistance in securing substantial project finance. The developer had ambitious plans for a large-scale mixed-use development in Mumbai, requiring significant capital investment.

The Challenge: The primary challenges faced by the developer included

• Capital Requirement: The project required INR 800 crore to fund land acquisition, construction costs, and development expenses.

• Affordable Financing: Securing financing at a competitive rate was crucial to maintaining project profitability.

• Lender Consortium: Structuring a consortium of lenders willing to provide the required amount under favourable terms posed a significant challenge.

The Solution: Our firm, leveraging its extensive network and expertise in Business finance, undertook the following steps to address the developer’s needs:

• Financial Structuring: We meticulously analysed the project's financial requirements and crafted a comprehensive financial structure that aligned with the developer’s funding needs and financial capabilities.
• Lender Engagement: We approached a consortium of lenders, including a leading private bank and other financial institutions with an established presence in real estate financing. Our strategy included highlighting the project’s viability, the developer’s track record, and the lucrative potential of the development.
• Negotiation and Term Sheet Development: Our team negotiated favourable terms and conditions with the lenders, focusing on competitive interest rates, flexible repayment schedules, and adequate moratorium periods to ensure cash flow alignment with project milestones.
• Risk Mitigation: We conducted thorough risk assessments and implemented mitigation strategies to address potential risks associated with the project, thereby enhancing lender confidence.
• Legal and Compliance Support: We provided legal and compliance advisory services, ensuring adherence to regulatory requirements and facilitating smooth transaction closure.

Success Story: As a result of our strategic approach and diligent efforts, we successfully facilitated the developer in securing INR 800 crore in project finance from a consortium of lenders led by a private bank. The financing package offered competitive terms, including a reasonable interest rate and favorable repayment terms, ensuring affordability and financial sustainability for the developer.