Kalpataru and Shangrila Infracon to Pursue Private Credit Fundraising for Debt Repayment

Indian Real Estate Firms to Raise ₹26 Billion Through Shorter Duration Bonds

Two Indian real estate companies, Kalpataru Properties and Shangrila Infracon India, are set to raise an aggregate of approximately ₹26 billion ($269 million) through the sale of shorter duration bonds. According to sources familiar with the matter, Kalpataru Properties plans to raise ₹16.35 billion through four-year and nine-day bonds, while Shangrila Infracon India aims to raise ₹9.50 billion through three-year notes.

The bonds are likely to attract interest from private credit funds, which have been actively seeking decent-sized deals. Private credit funds have been increasingly allocating a significant portion of their investments to the real estate sector, with real estate receiving the highest allocation in 2025, according to a report from consulting firm EY.

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Kalpataru Properties, which is returning to debt markets after a gap of two years, will offer a coupon of 8% payable on a quarterly basis. The final redemption will include an undisclosed premium to enhance the effective yield. GSS India Opportunities Alternate Investment Fund has committed to 50% of Kalpataru's issue, while the rest will be raised through bidding.

Shangrila Infracon India, on the other hand, is making its maiden issue. The firm is still in talks with investors and is expected to announce the issue in the coming days. Real estate companies have been facing challenges in securing funding from banks, which has led to an increasing reliance on private credit funds. As a result, the share of private credit funds in real estate financing is rising.