The Restack platform is your gateway to exclusive Alternative investments in Real Estate such as Non-Convertible Debentures (NCDs) issued by reputed developers and secured by real estate projects.
Screening process:
Hundreds of proposals are sourced across key cities directly by our on-ground team and through direct relationships. These are filtered basis the initial screening checklist and meticulously evaluated based on the investment thesis, thereby ensuring that only the best-fitting one is approved. The qualification criteria are the following:
Real Estate Developer
- NCDs issued by Tier 1/Grade A or a similar grade developer are only selected.
- Should have demonstrated a strong track record of delivering multiple real estate projects in their geography.
- Good financial track record with banks & financial institutions.
Project and Micro Market Analysis
- Only key micro-markets are considered with demonstrated sales momentum, minimal inventory overhang and fully developed infrastructure.
- Projects in advanced stage of approvals are considered.
- Projects with excellent visibility on cash flows are considered basis analysis of the product ticket size and its demand and understanding financial closure of the project.
Returns and Security Package
- These secured debentures offer high returns with monthly or quarterly interest income.
- Debentures available on The Restack platform are secured by real estate assets in the form of land, plots or apartments with a significant security cover.
- Our team of seasoned professionals and industry veterans use their investment management experience to arrive at a conservative underwriting price which is lower than the market value and hence provides a fair valuation of the security and minimizes risk.
Risk Mitigation Strategy
We understand that risks are inherent in any investment, but we’ve developed effective strategies to mitigate them:
Risks |
Mitigation Strategy |
| Market Risk | • Our comprehensive market analysis covers real estate micro-market trends like current sales momentum, inventory overhang and macroeconomic indicators during the underwriting process enabling us to identify investment opportunities with lower market risks. |
| Credit and Default Risk | • Diligence is done on the Developer (Issuer) and the security through leading third-party firms including legal firms and real estate valuers.
• All NCDs are secured by Real Estate assets through a mortgage, ensuring a significant security cover. • All the collections from these mortgaged assets are directly deposited by the customer in a separate Escrow account. • Additionally, corporate guarantees of the developer group are provided, further mitigating default risk. All the security is managed under the supervision of an Independent Debenture Trustee and an Escrow Bank. |
| Approval Risk | • We only list projects which are at advanced stage of development approvals. |
| Development Risk | • Reputed developers with significant development track record of having completed numerous projects are only considered. |
| Title/Litigation Risk | • Due diligence through independent reputed third-party law firms is done to ensure a clear title and minimize litigation risk. |
| Liquidity and Reinvestment Risk | • We provide a secondary market, enabling investors to buy or sell their investments before maturity after a lock-in period, thus mitigating liquidity risk.
• The platform lists investment opportunities with attractive high returns up to 16% IRR, providing investors with multiple investment options thus reducing reinvestment risk. |
Investing in Real Estate NCDs through The Restack platform unlocks the potential for high returns with robust risk mitigation strategies. Join our growing community by following 3 simple steps as stated below:
Step 1 – Sign up with us, if already signed up click on Login.
Step 2 – Complete your KYC so that we can know you better & adhere to KYC regulations.
Step 3 – Once your KYC is completed & verified, click on the “Invest” button of the opportunity in which you want to invest and start your journey with The Restack.
Disclaimer:
NCDs are subject to risks. Please make your own independent assessment of the merits and the risks of the investment opportunities available on the platform or mentioned in this blog, and conduct your own diligence and consult your own advisors on the legal, business and tax matters. The Restack does not give any investment advice or recommendation in respect of the opportunities available on the platform or mentioned in this blog and accordingly, nothing on the platform or in this blog should be considered as an investment advice or recommendation. Please refer the terms and conditions for further details.
