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TARC Limited has raised INR 1,000 crore from a consortium of domestic banks, led by Kotak Mahindra Bank, to refinance existing debt and enhance working capital. The funding, secured at an interest rate of 12.75%, will improve cash flows and financial flexibility for growth. The refinancing is tied to the cash flows of TARC Kailasa and TARC Tripundra projects. TARC is investing INR 1,200 crore in TARC Kailasa, a luxury residential development in Kirti Nagar, which aims to generate INR 4,000 crore in revenue and address the demand for gated condominiums in central Delhi.
TARC Limited, a real estate developer based in New Delhi, has successfully raised INR 1,000 crore from a consortium of domestic banks and financial institutions, with Kotak Mahindra Bank at the forefront. The majority of these funds, secured at an interest rate of 12.75%, will be allocated for refinancing existing debt. Additionally, there will be an extra INR 250 crore working capital facility available on demand. Advertisement
The consortium features institutions such as Nomura Capital, Aditya Birla Capital, and STCI. Amar Sarin, the managing director and CEO of TARC Ltd, expressed enthusiasm regarding this transaction, noting that it signifies a considerable positive advancement for the company.
The funds are expected to improve TARC's cash flows, allowing for significant savings. The decrease in interest costs is anticipated to provide the financial flexibility required for growth and expansion, as stated by the company. The refinancing is secured solely against the cash flows of two of the company's projects: TARC Kailasa and TARC Tripundra.
The company noted that by basing the refinancing on projected revenues from these projects, TARC is effectively aligning its financial strategy with its operational performance. It was also mentioned that the remaining debt will be secured by cash flows from TARC Ishva. The company is investing INR 1,200 crore in the development of TARC Kailasa, a luxury residential project located in Kirti Nagar, western Delhi. It plans to develop 1.7 million square feet under this project and anticipates generating INR 4,000 crore in revenue.
Sarin noted that the luxury residential real estate sector has been on an upward trajectory, and he believes this trend will persist. He highlighted that central Delhi has seen very few gated condominiums, and this project will meet the needs of residents who have had to relocate to Noida or Gurgaon.
TARC Kailasa spans a 6-acre land parcel and features five high-rise towers designed by the Andy Fisher Workshop from Singapore. The company has selected Arabian Construction Company as its contractor for the project, recognising their expertise in high-rise constructions and their extensive portfolio of completed projects across India and the UAE.
TARC Limited's strategic financing and substantial investment in TARC Kailasa position the company for significant growth in the competitive luxury residential market of Delhi. By securing funds at a favourable interest rate and aligning refinancing with projected revenues, TARC is enhancing its operational efficiency and financial flexibility. The development of TARC Kailasa not only aims to meet the demand for premium housing in central Delhi but also reflects TARC's commitment to delivering high-quality projects in collaboration with experienced partners like Arabian Construction Company. This initiative marks a promising step forward for both the company and its potential residents.
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