Debt investment
Real estate investment
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Real Estate Debt Investment - Blue Moon
Primary

Nelamangala, Bangalore

Commercial real estate investments - Property tag iconCredit Investing
Commercial real estate investments - Property tag iconResidential
Commercial real estate investments - Property tag iconUnder Development

₹ 1000000
Minimum Investment

Coupon

15% pa.pm

IRR

16.1%

Security Cover

2.9x

Issue Size

25 Crores

An alternative investment offering high fixed returns with regular passive income. Invest in High Yield Debt Investment secured against Investee's share of cashflows from a premium plotted real estate Project and Collateral Land in West Bangalore. Investee owns the project land and has tied up with a Tier 1 developer to develop the project under a revenue share Joint Development Agreement (JDA).

INVESTEE

Commercial real estate investments - Circle radio iconA Developer cum Landowner setup in 1996 and operating in Bangalore

Commercial real estate investments - Circle radio iconDelivered over 15 lac SF through development & contracting

Commercial real estate investments - Circle radio iconOwns the project land

PREMIUM PLOTTED PROJECT

Commercial real estate investments - Circle radio iconSpread on 22.48 acres comprising 401 units located in West Bangalore

Commercial real estate investments - Circle radio iconProject was launched in Dec-2023 with all approvals in place

Commercial real estate investments - Circle radio iconRobust Sales with 30% units sold in just 3 months

TIER 1 PROJECT DEVELOPER

Commercial real estate investments - Circle radio iconDeveloping the Project on a Joint Development Agreement with Investee

Commercial real estate investments - Circle radio iconDelivered 50 lac SF over 9 real estate projects

Commercial real estate investments - Circle radio iconDeveloper is not a party to the transaction

INVESTMENT RATIONALE

Commercial real estate investments - Circle radio iconHigh fixed returns of 16.1% IRR with monthly interest payouts

Commercial real estate investments - Circle radio iconHigh security cover of 2.9x through Mortgage & cashflow Hypothecation

Commercial real estate investments - Circle radio iconLow development risk as plotted projects have low construction costs & short construction cycles

Investment Highlights

invest in alternative assets

Investment Structure

Passive monthly Interest Income from non convertible debentures (NCDs)

Term sheet

Investee SPV of the Investee Group which will acquire the Collateral land
Obligor 1
  • SPV of the Investee Group which owns the Project land
  • Investee & Obligor 1 are part of the ‘Investee Group’
Project Developer
  • Project developed by a leading Bangalore real estate developer on a revenue share JDA (48% is the Developer share of revenue)
  • Delivered over 50 lac SF with excellent track record and 20 lac SF is under development
  • Developer is not a party to the transaction
Issue Type Senior Secured Non convertible Debentures (NCDs)
Total Issue Size INR 25 Crores in tranches
Tenor 27 months
Use of proceeds Acquisition of Collateral Land and General Corporate Purpose
Principal moratorium 12 months
Repayment 5 equal quarterly instalments post principal moratorium
Coupon (Rate of Interest) 15% per annum through regular monthly interest
IRR 16.1%
Project
  • Premium residential plotted project on 22.48 acres of land located in Nelamangala, West Bangalore
  • Investee Group owns 20.08 acres of the project land and has a 52% revenue share on this portion (Charged Saleable Area) under the Joint Development Agreement with the Project Developer
Project Saleable Area 5,30,705 SF
Charged Saleable Area 4,73,975 SF
Security Following security will be created in favour of the Security Trustee representing the interest of the debenture holders. This will be a CP to the disbursal
  • First and exclusive mortgage on Collateral land and on Investee Group’s Undivided Share (UDS) in 20.08 acres of Project Land
  • First and exclusive charge on Investee Group’s share of 52% revenue from Charged Saleable Area of the Project through escrow & hypothecation
  • Personal guarantee from the key Promoter of the Investee Group
  • Corporate guarantees from Parent entity of the Investee Group & Post-dated cheques
Security Cover
  • 2.9x total security cover

Investee

  • Commercial real estate investments - Circle radio iconEstablished in 1996, the group is a real estate developer cum landowner which has developed Residential & Commercial project developments in Bangalore

  • Commercial real estate investments - Circle radio iconThe promoter has more than 3 decades of experience in nuances of real estate development

  • Commercial real estate investments - Circle radio iconDelivered over 15 lac SF through development & contracting across multiple apartment & commercial projects in Bangalore

Project

  • Commercial real estate investments - Circle radio iconPremium plotted real estate Project spread on 22.48 acres land with saleable area of 5,30,705 SF across 401 units with all modern amenities including clubhouse, located in West Bangalore

  • Commercial real estate investments - Circle radio iconProject is being developed by a leading Bangalore-based Tier 1 real estate developer under a revenue share Joint Development Agreement with the Investee. The Developer has delivered over 50 lac SF with excellent track record and 20 lac SF is under development

  • Commercial real estate investments - Circle radio iconLaunched with all approvals in place and excellent sales record with 30% units sold in just 3 months

  • Commercial real estate investments - Circle radio iconThe Project is located close to Nelamangala Town and is the only Grade A real estate development in the vicinity

Location
Micromarket

Choose your investment structure

Principal Investment

1000000

Hold Period in Years

3

Returns

₹ 0

Investment Multiple

0x

IRR

0%

Account Value Graph

Value is the sum of cumulative gross coupon and cumulative principal paid back for a Principal Investment of INR 10 Lacs.

Cumulative Gross Coupon
Cumulative Principal paidback (redemption)

Investor cash flows

The below cash flows are representative of Principal Investment of INR 10 Lacs with a hold period of 27 months assuming a disbursal happening on 01-Apr-2024.
In the above Account Value Graph Year 3 consists of only 3 months since the Tenor is 27 Months.
In the above section - Choose your investment structure, Investment Multiple with a hold period of 3 years is calculated with a tenor of 27 Months.
INVESTOR CASH FLOWApr 2024May 2024Jun 2024Jul 2024Aug 2024Sep 2024Oct 2024Nov 2024Dec 2024Jan 2025Feb 2025Mar 2025Apr 2025May 2025Jun 2025Jul 2025Aug 2025Sep 2025Oct 2025Nov 2025Dec 2025Jan 2026Feb 2026Mar 2026Apr 2026May 2026Jun 2026
Coupon (Interest)125001250012500125001250012500125001250012500125001250012500125001250012500100001000010000750075007500500050005000250025002500
Debenture redemption0000000000000020000000200000002000000020000000200000
Distributions12500125001250012500125001250012500125001250012500125001250012500125002125001000010000210000750075002075005000500020500025002500202500
Note
*The above Coupon (Interest) is subject to TDS
Lock-in period of 1 year within which resale is not permitted

Risk Matrix

APPROVAL RISK
  • No Risk - Project is launched with all approvals in place including RERA
DEVELOPMENT RISK
  • Developed through a revenue share JD by a leading Bangalore-based real estate Tier 1 developer with significant track record in the industry
  • Low development risk as plotted real estate project requires lower capital expenditure and quicker turnaround
SALES RISK
  • Affordable ticket size ranging from 36 – 46 Lacs
  • Strong sales momentum in 3 months of launch
  • Most of the projects in the vicinity are Grade B & C developments and the Project being the only prime Grade A development which will ensure continued sales momentum
CASH FLOW RISK
  • Since the Investee has entered into a revenue share JD with the Developer, there is Zero dependence on the Investee to develop and sell the Project
  • Proportionate revenue share will be credited into the Investee’s escrow as and when the developer sells units in the project
  • In 3 months of launch, 30% of the units have been sold with locked-in receivables of INR 41.08 Cr ensuring financial closure on the project
DEFAULT RISK
  • Debt is fully secured through a first and exclusive mortgage on Collateral land
  • Debt is fully secured through Hypothecation and escrow of Investee’s share of 52% revenue from the Charged Saleable Area of the Project
  • 2.9x total security cover securing the debentures
MARKET RISK
  • Detailed analysis done on the real estate market, city and micro-market trends at the time of underwriting
  • Conservative underwriting has been taken for the sales price at ~8.7% discount to the market price
LIQUIDITY RISK
  • Short to medium term tenor of the Senior Secured Non convertible Debentures (NCDs) which will be serviced and repaid through the sales of the project
TITLE RISK
  • Due diligence carried out by one of the leading independent third-party law firms

Disclaimers

THIS PRESENTATION IS INTENDED ONLY FOR THE PERSON TO WHOM THE PRESENTATION IS MADE OR DELIVERED AND IS NOT FOR FURTHER CIRCULATION. THE CONTENT OF THIS PRESENTATION IS CONFIDENTIAL. THE INFORMATION IN RESPECT OF EVERY INVESTMENT OPPORTUNITY IS PROVIDED TO YOU SOLELY FOR YOUR INFORMATION AND UNDER NO CIRCUMSTANCES SHOULD THE INFORMATION BE USED OR CONSIDERED OR DEEMED AS AN OFFER TO SELL OR THE INVITATION OR SOLICITATION OF AN OFFER TO BUY ANY PRODUCT OR SERVICE OFFERED BY US. NO SUCH OFFER OR INVITATION OR SOLICITATION WILL BE MADE PRIOR TO THE DELIVERY OF DEFINITIVE DOCUMENTATION RELATING TO THE SECURITIES BEING OFFERED. ITS USE FOR ANY OTHER PURPOSE IS NOT AUTHORIZED. ANY REPRODUCTION IN WHOLE OR IN PART, OR THE DISCLOSURE OF ITS CONTENTS, WITHOUT THE PRIOR WRITTEN CONSENT OF REALTYSTACK PVT LTD (‘RESTACK’, ‘COMPANY’), IS PROHIBITED. THE CONTENTS OF THE PRESENTATION ARE PROVISIONAL AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE AND THE INFORMATION CONTAINED HEREIN IS NOT EXHAUSTIVE. THE COMPANY DOES NOT GIVE ANY INVESTMENT ADVICE OR RECOMMENDATION IN RESPECT OF THE OPPORTUNITIES MENTIONED IN THIS PRESENTATION AND ACCORDINGLY, NOTHING IN THIS PRESENTATION SHOULD BE CONSIDERED AS AN INVESTMENT ADVICE OR RECOMMENDATION

RESTACK IS ONLY AN ONLINE REAL ESTATE INVESTMENT PLATFORM TO SHOWCASE OPPORTUNITIES TO REGISTERED USERS AND IS NOT LIABLE TO ANY RISKS OR LOSSES OR FOR NOT REALIZING EXPECTED RETURNS OR PERFORMANCE FROM THESE INVESTMENTS WHICH COULD BE DUE TO MULTIPLE EXTERNAL FACTORS

THE INFORMATION IN THIS PRESENTATION HAS NOT BEEN INDEPENDENTLY VERIFIED. NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, IS MADE AS TO THE FAIRNESS, ACCURACY OR COMPLETENESS OF THE PRESENTATION AND THE INFORMATION CONTAINED HEREIN AND NO RELIANCE SHOULD BE PLACED ON IT. INFORMATION HEREIN HAS BEEN EXTRACTED FROM VARIOUS SOURCES AND THE COMPANY DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION. ALL PROJECTIONS AND VALUATIONS ARE PROVIDED FOR INFORMATION PURPOSES ONLY. THEY MAY BE BASED ON SUBJECTIVE ASSESSMENTS AND ASSUMPTIONS AND MAY PRODUCE DIFFERENT RESULTS ON A CHANGE IN METHODOLOGY. WHILE CONSIDERING INFORMATION, PLEASE NOTE THAT HISTORICAL INFORMATION OR PROJECTED INFORMATION SHOULD NOT BE RELIED UPON AS AN ACCURATE PREDICTION OF FUTURE PERFORMANCE

RISK FACTORS :

PLEASE REFER THE INFORMATION MEMORANDUM, WHICH CAN BE SHARED UPON REGISTRATION, FOR DETAILED RISK ANALYSIS

₹ 1000000
Minimum Investment

Coupon

15% pa.pm

IRR

16.1%

Security Cover

2.9x

Issue Size

25 Crores

Relationship Manager

+91 7618799818