Promoted by Prestige Estate Projects and Valore Estate Limited
Introduction to the Investment Opportunity
Bamboo Hotel and Global Centre (Delhi) Private Limited (BHGCPL) is a joint venture between Prestige Estates Projects Limited and Valore Estate Limited developing a high-value commercial and hospitality project in Aerocity, Delhi. The project includes two premium hotels—St. Regis (188 keys) and Marriott Marquis (590 keys)—and a Grade A office space spanning 6.16 lakh sq. ft.
The company is currently raising funds through Non-Convertible Debentures (NCDs) totaling ₹2030 crore, backed by corporate guarantees and strong asset security. Investors looking for exposure in the real estate and hospitality sectors can benefit from this opportunity.
Promoters
Key Investment Highlights
1. Project Overview
- Location: Aerocity, Delhi (Prime commercial and hospitality hub)
- Hotels: St. Regis (188 keys) & Marriott Marquis (590 keys)
- Office Space: 6.16 lakh sq. ft. (LOIs signed for 3.44 lakh sq. ft.)
- Lease Agreement: 30-year land lease with Delhi International Airport Ltd. (DIAL)
2. Financials & Funding Structure
- Total Project Cost: ₹5400 crore
- Debt Funding: ₹1700 crore (raised through banks and NBFCs)
- Promoter Contribution: ₹1800 crore
- Pending Cost to be Funded: ₹2074 crore (₹1020 crore from debt, rest from security deposits and promoters)
- Revenue Potential: Expected rental income of ₹133.6 crore per annum from office space; Hotels expected to generate ₹300 crore annual EBITDA at 65-70% occupancy levels.
Security & Investor Protection Measures
- Pari-passu charge on land lease rights, project receivables, and assets.
- Security cover of at least 1.5x to protect investors.
- Pledge of borrower shares to lenders.
- Corporate Guarantees from Prestige Estates, Valor Estate, and Advent Hotels.
- ₹268 crore security deposit with DIAL (50% pari-passu right for investors).
- 1-quarter interest obligation escrowed to ensure timely payments.
Credit Ratings & Market Position
- ICRA Rating: A+ (CE) Stable, reaffirmed for ₹980 crore NCDs.
- Standalone Rating: BBB-, reflecting operational risks.
- Prestige Estates Market Cap: ₹61,487 crore (as of Jan 2025).
- Valor Estate Market Cap: ₹9,294 crore.
Strengths & Investment Positives
- Prime Location: The project is in Aerocity, Delhi’s key commercial & hospitality hub, ensuring high demand.
- Strong Promoter Backing: Joint venture between Prestige Group & Valore Estate, established real estate players.
- Robust Security Structure: Pari-passu charge on land, receivables, and strong collateral backing.
- Pre-leased Office Space: LOIs signed for 3.44 lakh sq. ft., ensuring steady cash flow.
- High Revenue Potential: Hotels expected to generate ₹300 crore EBITDA annually.
- Credit Enhancement: The NCDs are backed by Prestige’s corporate guarantee, increasing investor confidence.
Risks & Considerations
- Project Completion Risks: Expected COD for commercial space in March 2026 and hotels by March 2027; any delays could impact cash flows.
- High Debt Levels: ₹2074 crore balance cost still needs funding, reliance on additional debt & promoter support.
- Real Estate Market Volatility: Hospitality sector growth depends on post-pandemic recovery and demand trends.
- Regulatory Risks: The project is under a long-term lease agreement with DIAL; any changes in lease terms may impact long-term operations.
Cash flows without put/call (Amount in Rs.)
Cash flows without put/call (Amount in Rs.)
Conclusion: Is This a Good Investment?
For investors seeking fixed-income opportunities in real estate, the Bamboo Hotel NCDs provide an attractive option with strong collateral backing, corporate guarantees, and prime asset value. However, investors should consider the high leverage and project completion timelines before making a decision.
Recommendation: Suitable for investors looking for secured, high-yield debt instruments with real estate exposure.
