Capital Solutions
Structuring and syndicating private funding for credible real estate developers and projects across key growth corridors.
We arrange private funding for builders and developers through three primary routes:
Any such funding is structured on a transaction-specific basis, taking into account the applicable legal, regulatory and contractual requirements.
Real Estate Capital Structuring
Click across layers to examine security covenants, priority of repayment, and risk-return characteristics.
Senior Secured Debt
Capital structured with a first ranking charge on project land, construction assets, and structured sales escrow.
- First mortgage on project land & development rights
- Exclusive escrow mechanism on all unit sales receivables
- Predictable coupon servicing with milestone-linked moratoriums
- Promoter personal and corporate guarantees
Secured Debt
Project debt structured with fixed commercial terms, clear repayment schedule, first mortgage security, and competitive interest rates as agreed with investors.
Projects with clear title, steady sales potential, and promoters seeking funding without giving up equity.
8 Key Terms for Project Debt
Key commercial terms agreed in transaction agreements:
Funding Before Bank Loan Sanction
Provides timely funding for land advances, approvals, or working capital where bank loans are not yet available.
We advise, structure, and connect parties; final terms and funding decisions remain directly between builder and investor.
Full Promoter Ownership with Secure Returns for Investors
The developer retains 100% equity ownership, while the investor receives fixed, contractually protected interest and principal return.
Equity Participation
Equity Participation
Suitability
Townships, plotting schemes, and large residential projects where paying regular monthly interest would strain cash flows.
Project-level equity or partnership investment in an SPV, where the investor shares in the development profit and risk.
Structured through equity shares, preference capital, or profit-sharing debentures based on mutual agreement.
- Capital Investment · Growth and equity funding from investors
- Shareholding · Partnership percentage or profit-sharing ratio
- Key Approvals · Investor consent on major project decisions
- Profit Distribution · Agreed order for capital return and profit payout
- Reporting · Regular updates on site progress and sales bookings
- Exit Timeline · Planned capital return through sales revenue or promoter buyback
Return profile
Returns are linked to project sales and profits, sharing business upside without fixed monthly interest pressure.
We help find aligned equity partners, model profit waterfalls, and coordinate diligence between developer and investor.
Flexible Structures
Flexible Capital Structures
Every project has unique cash requirements across its lifecycle; a one-size-fits-all loan rarely works.
Secured debt participation
Debt Portion: Fixed financing cost with zero equity dilution.
Equity participation
Equity Portion: Absorbs early-stage risks without monthly interest repayment pressure.
The debt-to-equity ratio is decided considering key project realities:
- 1.Land acquisition advance vs construction budget allocation
- 2.Joint development terms agreed with land partners
- 3.Current approval, NA, and RERA sanction status
- 4.Projected sales velocity and customer collection timeline
- 5.Total project cost and required funding quantum
- 6.Developer track record, brand reputation, and past deliveries
- 7.Available collateral and land security coverage
- 8.Cash-flow coverage and debt-service capacity
- 9.Target project execution and possession timeline
- 10.Investor return expectations and risk comfort
- 11.Local real estate demand and micro-market pricing
Achieving an optimal funding structure that powers project progress while keeping promoter ownership intact.
Debt vs Equity at a Glance
The summary below restates terms used in the source document. It is not a substitute for transaction documentation.
Return profile
- Secured Debt
- Contractually fixed interest and principal repayment.
- Equity Participation
- Profit sharing linked to project sales and revenue.
Security and governance
- Secured Debt
- First mortgage on land, RERA escrow, and financial covenants.
- Equity Participation
- Board / observer seat, SPV rights, and information updates.
Repayment and exit
- Secured Debt
- Agreed tenure with milestone installments or bullet repayment.
- Equity Participation
- Capital recovery and profit distribution upon unit sales completion.
Best suited for
- Secured Debt
- Near-term cashflows, predictable sales, no dilution desired.
- Equity Participation
- Large-scale gestation, phased projects, balance-sheet cushion.
Transaction-specific by design
Any such funding is structured on a transaction-specific basis, taking into account the applicable legal, regulatory and contractual requirements. Artha RFT's role is to advise, structure and facilitate the syndication of capital, while the investment decision and final commercial terms remain with the respective investor/lender and the developer.
Artha RFT advises on the equity structure and syndicates suitable private capital based on the project’s requirements, investor objectives and projected economics, while ensuring that the proposed transaction is structured in accordance with applicable legal, regulatory and contractual requirements.
The final investment decision remains with the respective investor, based on the information and documentation provided for the specific opportunity.