Certus advised an investor (~US$49Bn in AUM) on its INR1,000 crores / ~US$135MM debt investment

Senior secured debt investment by a global multi-asset alternative Investments Firm (“Investor”) against a high-quality residential portfolio in Bangalore.

Borrower is a prominent Bangalore based developer with a stellar track record of delivering high quality projects across office and residential segments. The underlying consists of a portfolio of four near complete, premium residential projects in Bangalore. This transaction was a win-win solution for the Borrower, Investor and existing lender as it: (1) provided last-mile completion financing and (2) resolved asset-liability mismatch.

Certus acted as the buy-side advisor to the Investor and was end-to-end involved including commercial assessment, diligence review and risk assessment, structuring, documentation, and closure.

Few highlights:

  • Among Investor’s early investments in real estate sector in India
  • One of the largest single investments by an institutional investor in India residential real estate in recent years
  • Certus acted as an extended team of the Investor, undertaking commercial assessment of underlying projects, scenario analysis, formulation of project milestones / covenants for post-investment asset management, practical assessment of material findings across all diligence streams, assessing commercial impact of planned demerger (and subsequent merger with a listed entity) and assistance in formulation of inter-creditor principles and escrow arrangements
  • A complex transaction involving multiple obligors, extensive inter-creditor negotiations, forming commercial view on a luxury portfolio and other corporate actions
  • Expeditious closure in ~3 months from start-to-end

The Indian residential sector has bounced back strongly (listed players doubling sales over last four years). However, capital availability remains limited creating a very strong vintage and that’s attracting smart capital towards residential credit

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