Polestar advises on INR 1,500 mn of Holdco financing for a large Grade A South India based warehouse developer.
Polestar acted as Sole and Exclusive Advisor to a reputed Grade-A warehouse developer in South India, with a proven track record of delivering 1.7 million square feet of high-quality facilities.
Few highlights:
- Requirement:
- The company had ambitious plans to build four new Grade-A warehouses across strategic locations.
- To execute this project, they sought flexible financing solutions covering land acquisition, development, and construction costs. Additionally, the structure needed to support a phased approach, allowing funds from completed warehouses to contribute to future developments.
- Solution delivered:
- Polestar successfully secured INR 1,500 mn in initial funding, with the option to increase that amount by another INR 1,500 mn (greenshoe) from a leading private credit fund.
- The final solution involved a flexible Holdco/Mezzanine structure, allowing for capital infusion into specific project subsidiaries as needed.
- The structure featured a fixed coupon and a redemption premium, ensuring manageable interest burdens throughout the development phases.
- Polestar was also successful in getting a term sheet from a leading private equity investor for a platform deal.
