How We Helped Our Client Raise ₹50 Cr Against Rental Income?

For property owners, one of the smartest ways to access funds without selling their asset is to raise funds against rental income. This structured funding solution is known as Lease Rental Discounting (LRD). It enables businesses to leverage their leased commercial properties to meet expansion needs or manage cash flows efficiently.

We regularly assist clients in raising substantial funds through the LRD facility. Here’s a real case study where we assisted our client, Mr. Gupta, in raising ₹50 Cr against the rental income of his commercial property in Pune.

Client History

Mr. Gupta has successfully operated his logistics and warehousing business for over 15 years. With the growing demand in the e-commerce and retail sectors, he wanted to purchase new land and construct additional warehouse units to expand his portfolio and generate more passive income through long-term rental income.

So, arranging a large amount of funding through traditional loans became a challenge, and lenders were asking for additional collateral.

Why Raise Funds Against Rental Income?

During the discussion, our team discovered that Mr. Gupta owns a Grade-A commercial property in Pune, which is leased to a reputed company for a long-term period of 9 years. The monthly rental income from this property was quite good and consistent.

This made him an ideal candidate to raise funds against rental income. Instead of pledging unrelated assets, he could leverage his existing rental flows through the Lease Rental Discounting facility.

Our Approach

1. Understanding the Requirement

We held multiple discussions with Mr. Gupta to understand his exact funding needs and repayment capacity.

2. Analysing Financials

Our team reviewed the company’s financial statements, the rental agreement, and the tenant’s details.

3. Structuring the Proposal

Based on rental inflows and tenant profiles, we structured the LRD funding proposal.

4. Approaching Lenders

We shortlisted suitable financial institutions and negotiated favourable terms.

Execution of the LRD Loan Facility

The warehouse property was valued at ₹140 Cr.
The lease had a lock-in period of 6 years.
Based on the rental inflows, we arranged an LRD loan of ₹50 Cr.
The process was executed smoothly, ensuring the timely disbursement of funds.

Financial Snapshot

Particulars	Details
Nature of Business	Warehousing & Logistics
Expansion Requirement	Land Purchase + New Warehouses
Property Market Value	₹140 Cr
Lessee	Reputed FMCG Companies
Rental (per annum)	₹12 Cr
Loan Sanctioned (LRD)	₹50 Cr
Purpose of Funds	Business Expansion + Passive Income Growth

Final Outcome

With the LRD loan, Mr. Gupta successfully purchased new land and began developing additional warehouse units. This helped him expand his business and multiply his passive rental income. He retained ownership of his existing asset while unlocking funds for growth, making it a win-win situation.

At Terkar Capital, our expertise lies in helping clients raise funds against rental income in a structured, transparent, and timely manner, always tailored to their business goals.