Land acquisition capital for a premium Baner development, structured to keep the construction raise open
The situation
A reputed developer had identified a parcel in Baner suitable for a premium residential development. The land deal required about 50 crores at the acquisition stage. Pre-revenue, ahead of approvals, and outside the appetite of traditional construction finance lenders.
The challenge
Land-stage capital is the most expensive and least standardised layer of the stack. The wrong structure at this stage, particularly on collateral, would lock the developer out of clean construction finance 18 to 24 months later, exactly when cheaper institutional money becomes available.
How the FINKOI team handled it
- Diagnosis before lenders. Mapped the full project lifecycle first: acquisition, approvals timeline, launch, and the construction raise that would follow. The land loan was designed as a bridge to that raise, not as a standalone deal.
- Lender shortlist by appetite. Approached only lenders with explicit land-stage appetite, avoiding the months lost pitching banks that were never going to say yes at this stage.
- Collateral architecture. Structured the LTV against a stress-tested valuation and layered the security so the parcel could be released into the construction facility later without renegotiation.
- Exit designed on day one. Tranching and prepayment terms were negotiated around the approvals timeline, so refinancing into cheaper construction finance carried no penalty sting.
The outcome
The mandate moved from diagnosis to lender-ready proposal at speed, and the developer entered the construction-finance stage with unencumbered flexibility. The expensive early money did its job and stepped aside on schedule.
Early-stage capital should be judged by how gracefully it exits, not just what it costs. Structure the land loan around the raise that follows it.