PPP

Projected Project Proposal (PPP) Overview by REDDINGTON FINANCIAL ADVISORY PRIVATE LIMITED

Introduction

At REDDINGTON FINANCIAL ADVISORY PRIVATE LIMITED, we specialize in facilitating structured real estate investments. Our Projected Project Proposal (PPP) is designed to offer a detailed roadmap for Developers and Promoters, ensuring a clear understanding of the project’s financials, compliance, and overall feasibility. This document is crucial for aligning all stakeholders and securing the necessary investment for the successful execution of real estate projects.

1. Developer/Promoter Information

• Company Name: [Insert Developer/Promoter’s Legal Name]
• Registered Address: [Insert Official Registered Address]
• CIN Number: [Insert Corporate Identification Number]
• Promoter(s) Name: [Insert Names of Key Promoters]

Purpose:
This section provides critical identification details about the Developer/Promoter, establishing the entity’s legal standing and operational credentials. It serves as the foundational information for any investment consideration.

2. Project Overview

• Project Name: [Insert Project Name]
• Location: [Insert Specific Location – e.g., Pimpri-Chinchwad, Maharashtra]
• Project Code Name: [Insert Unique Project Identifier – e.g., “Project Ascend”]

Purpose:
The Project Overview outlines the basic details of the real estate venture, including its name, location, and a unique identifier, setting the stage for deeper financial and operational insights.

3. Financial Information

• Initial Investment by Developer/Promoter: Committed initial investment ranging from INR 50 lakhs to INR 2 crores.
• Total Project Expenses: Estimated total expenditure required to complete the project.

Purpose:
This section highlights the Developer/Promoter’s financial commitment and provides an estimate of the total funds required, offering a preliminary glimpse into the project’s financial scope.

4. Project Specifications

• Total Floor Space Index (FSI): Example: 2,00,000 square feet of available FSI for the project.
• Tower Size and Number of Units: Example: A 20-story tower with a total height of 200 feet, comprising 100 residential units and 20 commercial units.

Purpose:
Project Specifications give a detailed view of the physical dimensions and scope of the project, helping investors understand the project’s scale and potential market impact.

5. Investment Type

• Proposed Investment Type: [Select either Perpetual Investment or Direct Investment]

Perpetual Investment:
This model offers a structured investment where returns are based on the investment amount and project size, following a fixed slab structure. Returns range from 7% to 12% per unit, with a fixed reserve price ensuring predictable returns, unaffected by market fluctuations.

Direct Investment:
This model links revenue directly to the project’s overall performance, with no fixed slabs. Revenue is distributed on a 60:40 basis between Reddington and the Developer, offering a flexible return structure based on project success.

Purpose:
The Investment Type section provides clarity on the financial models available, allowing stakeholders to choose the structure that best aligns with their financial goals and risk tolerance.

6. Revenue and Profit Projections

• Project Outcome/Revenue: Projected revenue from unit sales, including income from parking and infrastructure, excluding taxes.
• Investment Slabs: Phased investment breakdown, e.g., ₹1 crore for the first month, followed by ₹3 crores for subsequent months.
• Average Revenue Per Slab/Period: Expected revenue generation per investment phase.
• Average Profit Per Project: Estimated profit margin for the entire project.
• Return on Total Revenue: Percentage return on the total revenue generated.
• Return on Total Investment: Percentage return on the total investment made.

Purpose:
This section breaks down the expected financial returns, helping investors understand the potential profitability and financial flow throughout the project’s lifecycle.

7. Financial Ratios and Metrics

• Yield/Per Annum: For example, an investment of ₹50 crores with a projected annual yield of ₹4 crores, reflecting an 8% yield.
• Internal Rate of Return (IRR) / Annual Percentage Yield (APY): For example, with an investment of ₹30 crores, the IRR is estimated at 18%, with an equivalent APY of 18%.
• Cost of Capital (COC): Estimated at 11.667%, derived from a weighted mix of debt and equity financing.

Purpose:
This section provides key financial metrics that allow investors to evaluate the efficiency and profitability of their investment, ensuring a clear understanding of the financial landscape.

8. Compliance and Legal Requirements

• RERA Registration: Confirmation of the project’s registration under the Real Estate (Regulation and Development) Act, 2016.
• Environmental and Governmental Approvals: Certified copies of all required clearances, including environmental permits and construction authorizations.
• Tax Compliance: Documentation evidencing compliance with GST, TDS, and other relevant tax obligations.
• Security and Collateral: Validated documentation confirming the status of collateral provided, including land acquisition records.

Purpose:
This section ensures that all legal and regulatory requirements are met, safeguarding the project from potential legal issues and ensuring investor confidence.

9. Reporting and Documentation

• Project Plan and Timeline: A comprehensive project plan with timelines and milestones, presented in a Gantt chart or equivalent format.
• Progress Reports: Regular updates on project progress, including work completion percentages and any encountered challenges.
• Financial Statements: The most recent audited financial statements, including balance sheets, profit & loss accounts, and cash flow statements.

Purpose:
Reporting and Documentation provide a transparent view of the project’s progress and financial health, ensuring all stakeholders remain informed and engaged.

10. Miscellaneous

• Refundable Fees: Clear details regarding any refundable fees charged for investor listing or related services.
• Risk Mitigation Strategies: Detailed approaches for managing potential risks, including market volatility, project delays, and regulatory compliance.

Purpose:
This section addresses ancillary but crucial elements of the investment, ensuring that all potential risks are managed and all fees are clearly understood.

Disclaimer

PPP or Projected Project Proposals by Reddington Financial Advisory Private Limited are subject to quarterly updates based on the RBI and SEBI budget regime.

Purpose:
The disclaimer ensures transparency and keeps all stakeholders informed about the dynamic nature of financial projections and compliance requirements.