At the time of writing LandOrc has already set foot in India with their appointment or affiliation of SPV (Special Purpose Vehicle) to overlook the processes of developers pledging their collateral and many other legal matters. Indian real estate is one of the biggest and globally recognised sectors accounting for about 13 percent of its Gross Domestic Product (GDP). The sector’s market size was expected to reach $1 trillion by the year 2030. Indian developers have been facing project delays and financial support due to Covid-19 that has hit the realty sector hard according to an organisation of the country’s builders.
The Confederation of Real Estate Developers’ Association of India (CREDAI) has requested the nation’s government to come up with support measures for the segment including a cut in various taxes and restructuring of existing loans for a quicker bounce back of the sector. In addition to recent surge in prices of raw materials like steel and cement have contributed to a more than 10% increase in construction cost. Banks do not want to give loans to these developers despite them being developers who deliver their projects on time.
Finance, in the construction segment, plays a vital role. The materials utilised in the industry, along with the construction equipment, are all very expensive in India. At times, the developers are required to make bulk purchases and make advance cash payments in order to avail discounts in the market. This takes a huge toll on the cash flow of the business and hence, requires construction finance from external sources. The situation has not only kept a lid on the number of new launches across India but has also impacted project execution adversely.
Borrowing money for development, if you’re an established property developer is relatively easy, but the interest rate for property developers is high and many small-time property developers soon get in over their heads. Consequently, borrowing money for their development can be difficult. Financing has been tight in the real estate market due to lack of liquidity, thus, casting doubts on the future of real estate prices. Such impact also adversely affected the development/redevelopment market where capital funding is diminishing rapidly i.e., the banks and financial institutions are not willing to give out loans to these developers even if they have collateral. This has mainly affected the small-scale developers
These real estate developers, who face problem in financing their projects can now approach LandOrc for an alternate financing. LorcFinancing is backed by existing real estate assets as collateral. It works like this. A real estate developer in India needs funding for his project. He has got a land to use as collateral. They can approach LorcFinancing, collateralise the land, for a relatively lower borrowing rate and start working on their projects. This is subject to clearance from voting process via Land Governance tokens (“LGOV”). LorcFinancing, offers an opportunity to raise liquidity through the crypto ecosystem and lend it to the developers in India, holding their collateral. LandOrc is ready to rescue these developers.
They are having their private sale now with 3 months vesting. You can buy your LORC tokens through https://landorc.io/private-sale.html and be part of the rescue team in India.
Sources:
https://landorc.io/private-sale.html
https://www.99acres.com/articles/indian-real-estate-sector-and-the-current-challenges.html
