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Wonderful Project

  • Lubbock, Texas, United States, 79414
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Min. Investment

$12M

Annual Return

12%

Payment Over

2 months

Investment to Date

28.2 Crores

Invest Payment

Quaterly

Investment Cover

~2.2x

Borrower Exp.

20+ years

  • Ends in:

48 days

Invest Now

Why invest

  • Experienced developer
  • Among prominent developers in United States
  • ~78 lacs sf / 59 projects delivered
  • Presence in residential townships, affordable housing, hospitality, senior living & industrial fabrication / EPC
  • In-house team of 500+ people
  • Experienced developer
  • Earlier phases of projects (funded through Earnnest) have performed well both in execution and sales
  • Timely interest servicing
  • Principal serviced ahead of contracted schedule
  • Experienced developer
  • ~23 lacs sf / 22 affordable housing projects delivered in phases over last 10 years
  • ~14 lacs sf / ~1,900 units sold in last 5 years
  • Out of this, ~7 lacs sf / ~1,200 units are in the affordable housing category

Cash flow

This is a sample return for sn investment commitment of $12M. The actual return will change proportionately based on actual investment commitment.

Select no. of lots

0

Current Price: $1M per lot

Download repayment plan

Profit Amount

$8M

Annual Return

12%

Mutiple

1.19x

Particulars

14-Dec-2024

31-Mar-2025

31-Mar-2026

31-Mar-2027

Total

Investment

(12,412,000)

–

–

–

(12,412,000)

Interest Payment

(12,412,000)

–

–

–

(12,412,000)

Principal Repayment

(12,412,000)

–

–

–

(12,412,000)

Total

(12,412,000)

–

–

–

(12,412,000)

Note: For details

Project 1

  • Located off the GST Road, one of the active Industrial / Residential real estate sectors of Chennai. Well connected via GST Road and SH 57 to other parts of the city
  • Micro-market is in close proximity to Maraimalai Nagar Industrial Estate and Mahindra World City, major industrial and IT hub
  • Ground + 4 floors development on 1.9 acres land parcel
  • Area: 1.74 lac sf / No of units: 381 across 4 blocks
  • Configuration: 1 & 2 BHK (size 390 - 735 sf)
  • Approved & RERA registered
  • First 2 blocks are -80% sold; balance 2 blocks are future phases

Project 2

  • Located off the GST Road, one of the active Industrial / Residential real estate sectors of Chennai. Well connected via GST Road and SH 57 to other parts of the city
  • Micro-market is in close proximity to Maraimalai Nagar Industrial Estate and Mahindra World City, major industrial and IT hub
  • Ground + 4 floors development on 1.9 acres land parcel
  • Area: 1.74 lac sf / No of units: 381 across 4 blocks
  • Configuration: 1 & 2 BHK (size 390 - 735 sf)
  • Approved & RERA registered
  • First 2 blocks are -80% sold; balance 2 blocks are future phases

Photos

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Borrower Background

Overview

  • Borrower Group: Arun Excello (https://www.arunexcelle.com/
  • The group has 35+ years of experience in real estate / infrastructure development
  • Completed / delivered ~8,200 + homes aggregating to 71 lacs + square feet (sf)
  • Delivered projects includes ~23 lacs sf / 22 projects in affordable housing segment
  • Promoter is an alumnus from IIT Kharagpur
  • Second generation leadership is actively involved across project execution & finance functions
  • In-house team of 500+ people; residential projects are executed by the internal team giving better control on timelines and quality
  • Business verticals: Townships, Affordable housing, Hospitality and Industrial fabrication / EPC

Other Project

Risk & Mitigants

Can a slowdown in market impact performance of my investment?

  • These are affordable housing projects offering 1 & 2 BHK units costing between INR17-34 lacs per unit
  • All projects are located in close proximity to either industrial or IT hubs of Chennai with strong demand catchment
  • Investor exit requires completion and sale of ~1.3 lac st over two years i.e. required sale velocity of -0.7 lac sf p.a. only. In the last two years the Company has sold ~1.5 lac sf in the ongoing phases thereby allowing some room for market fluctuations.
  • Even in a scenario where sales take 6 months longer compared to the alternate scenario 1 (which is already factors significantly slower sale and execution than the management business plan provided in the debenture documents), the Debentures can be serviced in-line with the contracted servicing obligations.

Is there a risk of the project getting stuck?

  • Projects are located near industrial and IT hubs with strong demand potential
  • Company has represented that all material entitlements and approvals required for the project as of date, are in-place including RERA registration. Further, lead debenture holder (Maxim Capital Advisors LLP) undertook technical diligence through an independent and reputed technical expert before proceeding ahead with its investment
  • Adequate working capital of ~INR15 Crores is provided in the facility
  • Adequate working capital of ~INR15 Crores is provided in the facility
  • The group has strong in-house execution capabilities giving better control over timelines and quality
  • The group has completed 22 similar affordable housing projects with an aggregate area of ~23 lac sf over the last several years.

How will the projects be monitored? Is there any risk of cash leakages from the project?

  • All project inflows will be deposited in a debenture trustee-controlled escrow account. Axis Bank is the escrow bank.
  • Debenture trustee (IDBI Trusteeship Services Ltd) has appointed two monitors - a) a project monitor to oversee construction progress and review construction related bills before payment, and b) an escrow monitor to oversee the escrow accounts and monitor project performance vs. management business plan
  • Every sale requires an NOC (No Objection Certificate) from debenture trustee. No NOC is granted below a minimum sale price documented in the executed agreements, checking any cash leakage.
  • All releases from the escrow account for project expenses is controlled and reviewed by the project monitor and/or escrow monitor. This is to ensure that any money released from the escrow account is appropriately applied towards construction.

Can the debentures be sold prior to maturity?

  • Investment in these Debentures should be made with a mindset to hold till maturity (i.e. till 30th June 2026)
  • In case an investor would want to exit early, there is no guarantee that a willing buyer would be present at that point in time. Though the Earnest team can try to find a willing buyer on best effort basis.

Resources

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Details

Contact Address

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Policy ID

1u9psyjppx3aa7d3gb23c322xcbzht2w2zh3zka1u9p

Token Standard

CIP-68

Chain

Cardano

Contact Address

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FAQs

What are the projects underlying this investment?

• The investment is against an attractive mix of near-complete inventory and subsequent phases of ongoing projects, with demonstrated performance.
• These are affordable housing projects comprising of 1 & 2 BHK units having ticket size between INR17-34 lacs per unit
• The projects are 4 to 5 floor structures with construction timeline of less than two years
• The ongoing phases (2 projects) have performed very well (82% sold) with part completion; balance completions expected in 1H 2024. The company is planning to launch subsequent phases of projects in the quarter ended March 2024
• All the four projects are approved and are RERA registered
• Projects are located off GST road and OMR (IT expressway) in close proximity to industrial and IT hubs of Chennai.

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