TARC, has raised Rs 1330 crore from US based Bain Capital. The funds were infused by Bain Capital Credit in the form of secured long term NCDs. TARC has utilized part of this newly infused capital to retire its entire existing debt with multiple domestic lenders, thereby achieving the twin objectives of optimizing the cost of capital as well as substituting short term existing debt with patient long term capital.
These funds would be used to expand and maintain its recent growth rate. More precisely, it would be used immediately to develop TARC's notable New Delhi centric land parcels intended for residential development, as well as TARC's other land holdings strategically positioned in the satellite town of Gurgaon. TARC is preparing to debut its projects, which would bring in a new era of luxury living in New Delhi.
Amar Sarin, CEO & MD, TARC, said “This capital would provide us with the much-needed growth platform in a very timely manner. 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.”
Incidentally, this happens to be the third transaction by TARC with foreign institutions in the last 12 months. TARC has 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 development
