TARC Limited, a prominent player in the Indian real estate sector, has successfully raised ₹1,000 crore from a consortium of domestic banks and financial institutions, spearheaded by Kotak Mahindra Bank. This significant funding initiative, secured at an interest rate of 12.75%, is primarily aimed at refinancing the company’s existing debt. Additionally, TARC will have access to ₹250 crore as a working capital facility, enhancing its financial flexibility.
The consortium backing TARC’s fundraising includes notable institutions such as Nomura Capital, Aditya Birla Capital, and STCI. Amar Sarin, Managing Director and CEO of TARC, expressed enthusiasm about the transaction, viewing it as a substantial advancement for the company. He stated, “This funding will enhance our cash flows, facilitating substantial savings and providing the financial flexibility necessary for growth and expansion.” A strategic aspect of this refinancing is its alignment with the expected cash flows from TARC’s two key projects, TARC Kailasa and TARC Tripundra. By anchoring the refinancing on projected revenues from these developments, TARC effectively ties its financial strategy to its operational performance. The remaining debt will be secured against cash flows from TARC Ishva, showcasing a holistic approach to managing finances. TARC is currently investing ₹1,200 crore in the development of TARC Kailasa, a luxury residential project located in Kirti Nagar, western Delhi. The project spans 1.7 million square feet and is expected to generate revenues of approximately ₹4,000 crore. Sarin highlighted the growing demand for luxury residential real estate, noting, “Central Delhi has seen very few gated condominiums, and this project will fulfil the needs of Delhiites who had to move to Noida or Gurgaon.”
Covering a 6-acre land parcel, TARC Kailasa will feature five high-rise towers designed by the renowned Andy Fisher Workshop of Singapore. The company has engaged Arabian Construction Company as the contractor, leveraging their extensive experience in high-rise construction and numerous successful projects across India and the UAE. Previously, TARC had raised ₹1,330 crore from Bain Capital through non-convertible debentures for this project, underscoring strong investor confidence in the luxury segment of the real estate market. As TARC navigates this critical phase of growth, the emphasis on sustainability remains a cornerstone of its strategy. The company is committed to incorporating sustainable practices in its developments, reflecting a broader industry trend towards eco-friendly living spaces. This focus not only aligns with contemporary consumer preferences but also addresses the pressing need for environmentally responsible construction methods. In the eyes of potential buyers and investors, TARC Kailasa represents more than just a luxury home; it embodies a lifestyle choice that resonates with aspirations for quality living and community. As the demand for upscale housing continues to rise in urban centres, TARC’s strategic initiatives position it well to capture this lucrative market.