TARC Explores Alternative Funding and Partnerships for Upcoming Projects

Delhi-NCR's prominent premium real estate developer, TARC, is actively engaging in discussions with Bain Capital to secure project-specific funding, equity deals, and development partnerships for its high-end offerings. With a projected top-line of Rs. 7500 crore over the next few years across three ongoing projects in North India, the company is strategically navigating financial avenues to support its ambitious ventures.

Listed on the stock exchanges, TARC had previously raised approximately ₹1330 crore from Bain Capital through Non-Convertible Debentures (NCDs), with a repayment timeline spanning five years. The company reported project sales of around ₹520 crore in the fiscal year 2023.

Amar Sarin, MD, and CEO of TARC Ltd, disclosed that the company is currently executing three projects in the Delhi-NCR region, including one in Gurgaon and two others in the National Capital. Delivery timelines for these projects extend over the next one to four years.

Sarin stated, "We anticipate 90 per cent bookings for our total inventory by the end of this year (2024). Most of the development continues to be in the premium space with the average price of apartments ranging between ₹6 crore and ₹15 crore, and the average size being 3500 sq ft." The company's focus remains on developing projects that span around one million sq ft and above.

Regarding funding for ongoing projects, Sarin mentioned that a portion would likely come from internal resources, in addition to advance booking amounts and potential bank loans if required. However, for future projects, especially beyond a one-year timeline, TARC is exploring alternative funding options, including equity deals or project-specific funding in collaboration with Bain Capital.

"We are in talks with Bain Capital for some construction-linked funding and equity deals, but these would be project-specific. They are likely to materialize over the next one year or so," Sarin added.

Currently, TARC is proactively repaying NCDs "ahead of time," and in 2021, it successfully sold a warehousing asset in North Delhi to Blackstone. The company maintains its focus on the super-premium luxury residential segment, with plans for approximately four more projects, mostly in the Delhi-Gurugram region and potentially Noida.

HBL