Kalpataru, India

2020 was one of the most volatile years for real estate where the residential market which was already struggling for survival was forced to deal with the collapsed demand in the residential demand due to lockdown across India. This led to financial struggles for most developers. Various boosters given by the central government and more prominently the Maharashtra government by reduction in stamp duty till Mar 2021 revived the sector significantly resulting in a more normalised market.

However, the rising number of Covid cases in the country and the resultant lockdowns in some cities, started to jeopardise the recovery path of the sector resulting in the requirement of liquidity for survival. The Group had repayments due for which they needed liquidity in a shorter time frame and hence, a bridge financing solution.

Cushman & Wakefield was appointed as a sole agency to achieve a financial closure for the projects. Cushman & Wakefield leveraged Kalpataru group credentials with Asia Pragati Group to secure maximum quantum thereby achieving a closure within three months

This is one of the largest structured financing transactions concluded in residential real estate in 2021 in India in record time of less than three months.

Consultants said this deal assumes significance given the overall liquidity squeeze faced by developers as well as NBFCs.