Listed real estate developer, TARC Limited has raised Rs 1330 crore from pedigreed US-based Bain Capital, Amar Sarin, CEO & MD of the company told ET. The funds were infused by Bain Capital in the form of secured long-term NCDs.
The transaction is one of the largest funds raised aimed toward growth and development in recent times in North India. TARC has utilized part of this newly infused capital to retire its entire existing debt with multiple domestic lenders.
“This capital would provide us with the much-needed growth platform in a very timely manner. The investment by a firm such as Bain also demonstrates the quality of projects and land banks in the company. We are currently witnessing a full blown residential real estate cycle in North India,” said Amar Sarin, CEO & MD TARC Ltd.
The amount will be used for expansion and to maintain the recently acquired growth momentum. It would be also used on an immediate basis for the development of its New Delhi-centric land parcels meant for residential development besides the other landholdings of TARC which are strategically located in the satellite town of Gurgaon.
“We are currently witnessing a full-blown residential real estate cycle in North India. This capital would help us to create magic on some extremely strategic residential land parcels that we own in the New Delhi market. We now have all the ingredients in place to focus on development and take the Company to the next level thereby creating tremendous shareholder value in the process,” Sarin added.
This is the third transaction by TARC with venerable foreign institutions in the last 12 months. TARC had earlier sold some of its non-core land assets to Blackstone and ESR with the objective to deleverage its balance sheet and sustain its continued focus on residential real estate development.
“A transaction size of this magnitude demonstrates that pedigreed institutional investors are bullish on the sustainability of the current momentum in the residential real estate sector in the country. TARC would benefit tremendously from the freshly infused capital as it would now have reasonably priced working capital at its disposal to take up residential development on its fully-owned land parcels being carried in its balance sheet historically at a very low cost,” said Rajeev Bairathi, MD & CEO, Shearwater Ventures.
Source : ET
