C02 · Capital & transactions

Capital and partnership advisory for real estate developers

Capital is rarely the binding constraint on a Mumbai development. Capital on terms that survive a slow eighteen months usually is. The structure agreed at the outset determines whether a delay is a problem or a crisis.

For
Developers and landowner-developers
Covers
Structure, partners, term sheets
Instruments
Equity, structured debt, JV, platform
Boundary
Advisory only; not a lender or placement agent

Capital & Partnership Advisory, in brief

Capital and partnership advisory helps a developer raise and structure project capital: designing the capital stack, preparing investor-grade material, identifying and approaching equity, structured-debt and development partners, and negotiating term sheets. The Genesis advises on structure and counterparty; it does not lend, underwrite or place securities.

Size the requirement to the honest plan

The most common capital mistake we see is raising against an optimistic absorption plan. A facility sized for a 24-month sell-out, drawn against a project that takes 34, produces a covenant problem in month twenty — at which point the developer is negotiating from weakness and usually discounting inventory to service debt.

We size the requirement against a stressed absorption case, not the base case, and we model peak exposure rather than total cost. The difference between those two numbers is often where a project's solvency lives.

The counterparty matters as much as the terms

Two facilities at the same headline cost can behave completely differently when a project slips. One lender extends against evidence of progress; another enforces. One equity partner supports a re-plan; another blocks it to protect a preferred return.

We treat counterparty selection as a substantive part of the work: how this partner has behaved in comparable situations, what their own capital horizon is, and how their incentives sit relative to the developer's when things go moderately wrong.

InstrumentSuitsThe real cost
Senior construction debtApproved, launched projects with visible collectionsCovenants and enforcement rights; escrow discipline
Structured / mezzanine debtPre-approval or slower-absorption situationsHigh coupon and tight security; unforgiving on delay
Project equityDevelopers short of equity, sharing upsideMargin dilution; governance and exit rights
Joint development (JDA)Land-rich, capital-light situationsArea or revenue share; partner execution dependency
Platform capitalDevelopers with a repeatable pipelinePortfolio-level governance and deployment commitments
Bulk inventory saleImmediate liquidity needDeep discount; competes with retail sales thereafter

What investor-grade material actually means

Most developer information memoranda are marketing documents. Institutional capital reads them as such and discounts accordingly, which lengthens diligence and weakens the negotiation.

Investor-grade material states the assumption set and its sources, shows the downside case without being asked, discloses the approval and litigation position plainly, and reconciles to the developer's audited position. Preparing it properly is often the single highest-return activity in a raise, because it changes what the counterparty believes it is underwriting.

Scope

What the engagement covers.

  • 01Capital structure and stack design
  • 02Funding requirement and peak-exposure modelling
  • 03Investor-grade information memorandum
  • 04Equity and structured-debt partner identification
  • 05Joint venture and platform structuring
  • 06Term sheet negotiation support
  • 07Security and covenant review
  • 08Diligence coordination and data room management
  • 09Existing facility restructuring support
  • 10Landowner and development partner matching

Deliverables

What you receive.

Funding requirement model

Peak exposure and drawdown profile under base and stressed absorption, so the facility is sized to the plan that might happen.

Capital structure recommendation

Instrument mix, ranking, security and covenant envelope, with the behaviour of each instrument under delay modelled.

Information memorandum

Investor-grade material with sourced assumptions, a stated downside, and full approval and litigation disclosure.

Counterparty shortlist

Partners assessed on behaviour in comparable situations and on incentive alignment under stress — not only on price.

Term sheet negotiation support

Commercial negotiation of pricing, security, covenants, governance and exit, alongside the developer's counsel.

Method

How we run it.

Four stages, each with a defined output. Nothing proceeds on momentum.

  1. 01

    Model the requirement

    Peak exposure under a stressed absorption case, not total project cost under the base case.

  2. 02

    Design the structure

    Instrument mix and covenant envelope chosen for how they behave when the project is late.

  3. 03

    Prepare properly

    Investor-grade material and a complete data room before approaching anyone. Approaching early costs credibility.

  4. 04

    Negotiate and close

    Counterparty selection, term sheet negotiation and diligence coordination through to documentation.

Outcomes

What changes.

  • A facility sized against a stressed case, not a hopeful one
  • Counterparties chosen for behaviour under delay, not just price
  • Material that shortens diligence instead of inviting scepticism
  • Covenants understood before signature rather than at breach
  • Peak exposure modelled and funded

Questions

Capital & Partnership Advisory: frequently asked.

Do you lend or place funds yourselves?

No. We are an advisory firm. We do not lend, invest our own balance sheet into client projects, underwrite facilities or act as a placement agent for securities. We advise on structure and counterparty and support the negotiation.

How long does a capital raise take?

For a single project facility with clean approvals and prepared material, typically three to six months from mandate to drawdown. Preparation quality is the main variable — approaching the market before the data room is complete usually lengthens the process rather than shortening it.

Is bulk inventory sale a reasonable way to raise capital?

It raises cash quickly and it is sometimes the right answer under pressure, but the discount is real and the bulk buyer becomes a competing seller in your own project for years. We model it alongside debt and equity rather than treating it as a last resort or a first one.

Capital & Partnership Advisory

Bring us the decision, not the deadline.

The earlier we are involved, the more value there is to protect. Tell us where the project stands and we will tell you what we think.