Cornerstone Plans INR 1,700 Cr Fundraise for Residential, Commercial Projects in Bengaluru

Cornerstone, a prominent Bengaluru-based land holding and development company, is set to raise INR 1,700 crore to support its real estate ambitions. The capital infusion will come through a blend of non-convertible debentures and land monetisation, with significant backing from Kotak Alternate Asset Managers (KAAML). This move marks a crucial turning point for Cornerstone as it seeks to scale up both residential and commercial projects across Bengaluru.

Project Deployment Across Key Bengaluru Zones

The funds will be channelled into six residential projects in East Bengaluru and two large-scale commercial projects in the central business district. Additionally, Cornerstone plans to consolidate land holdings in North Bengaluru, a region witnessing high investor interest due to upcoming infrastructure and connectivity developments. This strategic focus is designed to position the company as a cornerstone of Bengaluru’s urban expansion.

Resolution of Legacy Loan Issues with L&T Finance

The capital raise also aligns with Cornerstone’s broader plan to restructure its financial position and resolve pending issues with L&T Finance. Between 2017 and 2019, L&T had sanctioned loans worth INR 1,285 crore, but disbursed only INR 835 crore, causing significant delays in project execution. Although Cornerstone managed to recover over INR 1,400 crore, the account was classified as non-performing by L&T and ARCIL. Currently, Cornerstone has secured interim relief from the Karnataka High Court, shielding its assets while legal proceedings are underway.

Legal Safeguards and Compliance Measures in Place

The proposed investment from KAAML is conditional on clean title verification and regulatory clearances—both of which are currently protected under the court’s interim order. The company is actively engaged in negotiating a full and final settlement with L&T Finance, including the provision of alternative collateral, to achieve a long-term resolution and restore investor confidence.

Cornerstone’s Vision for Business Revival

This fundraise signals a broader revival plan for Cornerstone, which is now focusing on operational reboot, project acceleration, and regaining market trust. With KAAML’s institutional support and a strong land bank, Cornerstone is aiming to make a powerful comeback in Bengaluru’s residential and commercial real estate sector, catering to the city’s evolving housing and workspace demands.

Key Highlights – Cornerstone’s INR 1,700 Cr Fundraising Drive

• INR 1,700 crore to be raised through KAAML investment and land monetisation.

• Funding structured via non-convertible debentures for project execution.

• Covers 6 residential projects in East Bengaluru and 2 commercial projects in Central Bengaluru.

• Plans include land consolidation in North Bengaluru for future growth.

• Loan disputes with L&T Finance under legal resolution with Karnataka High Court interim relief.

• KAAML’s investment subject to clean titles and regulatory clearances.

• Strategic push to revive Cornerstone’s stalled operations and unlock value.

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