Structured Funding for Commercial Property Owners
Structured funding for commercial property owners means large-ticket credit of ₹25 Cr to ₹500 Cr, fund-based and non-fund-based, arranged for property-owning businesses and the groups behind them. On this desk the asset is read as it stands: completed, let, and with rent already arriving. Credit Core Finance appraises the file, structures the facility and places it with a leading private bank's structured desk. The desk lends pan-India.
Four situations that bring a property owner to a structured desk
The asset is finished and let, and contracted rent lands in the account every month. The value built into the building stays locked inside it unless a raise converts that future rent into capital available now, without a sale. Leaving the asset unlevered means the next expansion is funded out of retained surplus, at whatever pace that surplus builds.
A facility drawn during construction stays in place long after the contractors have gone and the tenants have moved in. Its terms were written for building risk and project milestones, not for the steady rhythm of contracted monthly rent. Carrying project-stage debt against a let asset means the building services a structure built for a phase it has already left.
Several let assets sit on the balance sheet, each carrying a facility written at a different time under conditions that no longer match. Payment dates run on separate calendars, and each facility holds its own security and its own covenants, so the borrowing base stays fragmented across buildings that are performing very differently. Left scattered, the surplus a strong building throws off cannot reach a quiet period in another.
Space in the building is still filling, or a principal tenant is moving toward the end of its term with renewal under discussion. The rent line faces a known transition point where income moves before the next contract takes effect. Treating occupancy as static leaves the owner carrying whatever gap opens the moment that transition begins.
What the file shows
The lease agreement records the promise, and the bank statement records what actually arrived. The signed contract fixes the escalation schedule and the due date. The account ledger shows the date each transfer settled and whether the amount matched the invoice or fell short of it, after what was withheld at source. Where the two diverge, the paper promise gives way to the cash pattern. On an operating business the revenue line moves with order books and customer demand; on a let asset the file reads the variance between a fixed obligation and actual clearing behaviour.
Cash is controlled only where it passes through a channel of its own before anyone draws on it. Rent that lands in a general current account mixes with operating payments and unrelated withdrawals, and the trai thins out quickly. A structured route sends tenant payments into a dedicated account where the scheduled obligations are met first and the surplus then reaches the owner. An operating company's receipts scatter across suppliers and payroll; a let asset carries one contractual stream through one settlement sequence.
A rent roll is only as good as the balance sheets behind the signatures on it. The schedule records how the floor area is distributed across occupants and how long each has left to run, alongside what an early exit would cost. Where one occupant holds most of the area, the rent servicing the facility rests on that single credit. An operating business generates its cash through its own execution; a let asset depends on the continuity of third parties whose credit sits outside its own accounts.
What already sits on the title sets the boundary of anything that can be structured against it. The title search and the registry show every charge and lien standing against the land and the building. A new structure has to settle those claims or accommodate them, and cannot treat the title as clear ground. A trading file rests on stock movement and working capital swings; a let-asset file rests on immovable title and what is registered against it.
What this desk funds
Seven facility types run through this desk, each set out in full on the structured funding department page. Each carries its own screen, and a proposal is read against the screen for the facility it is actually asking for.
| Facility | What It Funds | Link |
|---|---|---|
| Capex term loan | Plant, equipment and capacity addition against an existing operating base. | Capex term loan funding |
| Working capital syndication | Fund-based and non-fund-based limits at a scale one lender may not carry alone. | Working capital syndication |
| Lease rental discounting | Liquidity against long-term lease contracts on completed commercial or industrial assets. | Lease rental discounting |
| Builder last-mile | Completion funding where the project is above 70 percent complete. | Builder last-mile funding |
| NCLT resolution | Acquirer-side structured debt on a resolution transaction. | NCLT resolution funding |
| Promoter funding | Facility raised at promoter level against holdings. | Promoter funding |
| Funding after SMA or NPA | The route where credit history carries a past stress event. | funding after SMA or a regularised NPA |
The band, and the gate a stressed file has to clear
The band is ₹25 Cr to ₹500 Cr, fund-based and non-fund-based. Term loan tenor runs up to 7 years. Lease rental discounting runs 10 to 12 years. Two numbers govern the read on any file: debt service coverage above 1.0x, and collateral cover of around 1.5x.
Credit history that is not spotless is workable, and a large share of the enquiries that reach this desk sit exactly there. An account that carried an SMA-1 or SMA-2 tag in the past, or that slipped to NPA and has since been regularised, can be structured. An account that is a live NPA today is not funded as it stands. The order is regularise first, then structure, and it does not run the other way.
RBI classifies an account SMA-1 where principal or interest is overdue for 31 to 60 days, and SMA-2 where the overdue period runs 61 to 90 days. SMA-2 is a pre-NPA classification, not an NPA. The resolution route for exposures at this size sits in the Prudential Framework for Resolution of Stressed Assets, RBI/2018-19/203, DBR.No.BP.BC.45/21.04.048/2018-19, issued 7-Jun-2019. The full treatment of a stressed credit history is set out separately [L9].
What sits outside this desk
Three things this desk does not do, stated here so a reader finds out on the page rather than in a meeting.
Land purchase is excluded. Construction finance is excluded. The one exception is builder last-mile above 70 percent complete, which is the only construction lane this desk carries.
One more line is worth drawing for this borrower class, because a large share of the enquiries this page will catch sit on the wrong side of it. What this desk reads is a completed building let to third parties, with leases in force and rent arriving in an account. An asset still under construction does not qualify, and a proposed tenant is not a lease. A building the owner occupies itself carries no contracted rent to read, whatever the building is worth. Where a group holds a completed and let asset and wants liquidity against it without selling it, that is the file this desk reads, on the rent that has actually arrived rather than the rent that is expected.
Below ₹25 Cr the requirement belongs to a different set of lenders and a different appraisal, and Credit Core Finance runs that lane separately. A collateral-free requirement backed by the guarantee scheme is read on the CGTMSE page for Pune. A project or term loan below the structured band is read on the project and term loan page. Working capital and cash credit at MSME scale is read on its own page These are different products with different economics, and a ₹5 Cr requirement pushed into a ₹25 Cr structure serves nobody.
How a property-owner mandate is worked
The advisory sits in Pune and the desk lends pan-India, which is why a property-owner file from anywhere in the country is read on its own merits rather than against what a local branch can carry. A mandate starts with a read of what exists: financials, banking conduct, the leases as they stand and the rent as it actually arrives, the security genuinely available, and the credit history as it is rather than as it is hoped to appear. What follows is an appraisal note and a structure, and the file reaches the desk in the form a credit team reads.
Credit Core Finance appraises and structures. Lenders decide. Nothing on this page is an offer of credit, an indication of eligibility, or a statement of what any lender will approve.
FAQ — Seven Questions
No. RBI withdrew the mandatory consortium requirement. A borrower and its lenders may use a consortium, a multiple banking arrangement or a syndication, and the choice is a commercial one made on the facts of the file rather than a rule.
No. The independent credit evaluation referred to in RBI's Prudential Framework for Resolution of Stressed Assets applies to resolution plans where aggregate exposure is ₹100 Cr or more. It is not a general precondition for a normal credit appraisal at this ticket size. A rating may still be commercially useful. It is not a gate to cross before a file can be read.
Yes. RBI's framework for multiple banking arrangements requires lenders to exchange information on borrower conduct, with sharing at least quarterly, and existing credit facilities are declared at the point of application. A file built on the assumption that each lender reads the account in isolation does not survive contact with that framework.
Not by itself. What already sits on the title sets the boundary of what can be structured against it, and an existing charge is either settled, refinanced or accommodated inside the new structure. The file states what stands registered against the land and the building, and what the proposed structure does about each claim. The question the file answers is what the title can carry, not whether the title is clear.
On what is let. The desk reads leases in force and rent arriving, so a partly let building is read on the contracts that exist rather than on the space still to fill. The file shows the two separately: what is contracted and arriving, and what remains to be let. Occupancy that is still building is a transition the file states rather than a fact it assumes away.
No. SMA-2 means principal or interest was overdue for 61 to 90 days, and it is a pre-NPA classification. A past SMA-1 or SMA-2 tag, or an NPA since regularised, is workable. An account that is a live NPA today is not funded as it stands.
Only at last-mile, where the project is above 70 percent complete. Land purchase and construction finance sit outside this desk entirely. A project in a planning area also registers with the Maharashtra Real Estate Regulatory Authority under Section 3(1) of the Real Estate (Regulation and Development) Act, 2016, and each phase registers as a project in its own right.
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