Purchase of Land and Promoting Residential Houses in Prime Locations

Opportunity Snapshot

  • Country: India India
  • Industry: Real Estate
  • Stage: Seed
  • Investment size: $4,000,000 / min. $2,000,000
  • ROI: 20% in 2 years
  • Type of investment: Debt

Investment Opportunity

We need a minimum of USD 10 million, the reason is that we need to initially invest on the land and then the money comes from the purchaser at various stages.

We intent to purchase land in prime locations in Pondicherry in India, near seashore and then promote them into residential houses, with four storey buildings and sell them, the current demand is good and the turn around period is also faster. There is good demand for such properties.

We plan to purchase old houses of good size and in prime locations, with good serenity and those houses will be demolished and the same will be converted into a 4 storey or 5 storey buildings.

This is planned in a area close to the ashram, where in the people from various parts of the world visit this place and would prefer to stay in their own houses for months and they do not want to use the hotels, such people prefer to purchase houses and stay

The uniqueness of the project is that the houses will be built in the colonial style and will capture the style practiced in the Ashram, the architect we chose is also an Ashram person, and so it goes well with the project.

We get good preposition for this and the turn around period is very quick, within a period of 12 to 18 months the project will get completed.

We plan to do two to three projects at the same time getting staggered over a period of three to four months, where in we get the continuity of the business.

Hence we are focusing in this area, hence we look forward for a fund which could be returned at a interest rate of 6% PA.

Competitive Advantage

We have very few competitions and we have a differentiation with others, with the best skill and talented persons, compared with others.

The style will be of colonial one, where in the architect is from Ashram, and has better knowledge of the people coming to that place and will show more interest to live in such designed houses.

Rationale for the deal

Currently very few persons are there and they are doing well in field and they are not able to cater the demand, hence to support the needs, we are planning to start similar activity with added and better advantage compared to that of what is currently practiced.

Use of financing

We need a minimum of USD 10 million, the reason is that we need to initially invest on the land and then the money comes from the purchaser at various stages.

The construction of the flats should not get hampered due to want of fund from the buyers; in order to get reputation we need to do the construction non stop hence we need the fund at one go.

Opportunity for the investor

We are looking for a debt investment, the repayment expected is for a minimum period of 5 years, and the interest rate we are looking at it is 3% and to maximum of not more than 5% per annum.

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