Paradise Cliff Kasar Devi, Almora
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Investor FAQ

Straight answers to the questions investors actually ask.

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Structure, process, risk, compliance

Every question investors have asked — answered here first.

Tap a question to expand. Specific project numbers, the financial model, and the full risk register are shared privately in the data room after the introductory call.

What stage is Paradise Cliff at?

Paradise Cliff is at the pre-construction seed stage. We own the land freehold with clear title. The ₹10 Cr raise funds architectural design, statutory approvals, enabling works, and initial development. Construction starts after approvals; opening is targeted for 2028.

What is the target raise and minimum ticket size?

The current tranche is a ₹10 Cr pre-construction seed round. We prefer larger tickets (from ₹50 lakh onward) to keep the cap table small. There is no hard minimum floor for the right strategic partner, but our goal is a focused investor base we can actually engage with.

What instruments are on offer?

Two instruments in this tranche: direct equity in the project SPV, and Compulsorily Convertible Debentures (CCDs) that pay a fixed coupon during construction and convert to equity at opening or stabilisation. You can review both on the Investors page and choose what fits your risk preference.

What is the projected IRR?

Illustrative projections are shared in the investor teaser and detailed financial model under NDA. Because we are entering at pre-construction pricing, the IRR profile is weighted toward land-stage and construction-stage revaluation steps, followed by operating cashflow post-opening and strategic exit at stabilisation.

What is the exit timeline?

We target a 5–7 year horizon from subscription. Primary exit pathways are a strategic sale to a hospitality platform, a secondary sale to a long-horizon investor at stabilisation, or inclusion in a REIT-like structure if hospitality REITs continue to develop in India. Specific timing depends on build progress and market conditions.

Who owns the land?

The land is freehold with clear title, held by the project's legal entity. Full title documentation and due-diligence materials are shared in the data room after NDA. Clean, litigation-free title is a precondition we have already solved for — not something an investor inherits as a risk.

How can NRIs invest?

Hotel and tourism in India are under the 100% automatic FDI route, so NRIs can subscribe via equity or CCDs without prior regulatory approval. Remittance happens through NRE, NRO, or standard inward-remittance channels. Our counsel and bankers handle KYC, FCGPR filings, and subscription documentation end-to-end. Repatriable and non-repatriable options are both supported.

Is this a public offer? Is it SEBI-regulated?

This website is an expression-of-interest document only — not an offer or solicitation. Actual investment offers are made privately, through documented term sheets, to qualified investors who have completed an introductory call and signed an NDA. The tranche is structured as a private placement within the statutory caps on investors per financial year and complies with applicable provisions of the Companies Act.

How is my capital protected during construction?

Three mitigations: (1) funds are drawn against verified milestones rather than released upfront; (2) CCDs offer a contractual coupon during construction for investors who want defined in-term cashflow; (3) the project is structured with contingency buffers, experienced local contractor partners, and staged approvals. Full risk register is in the data room.

What are the main risks?

Four principal risks: approvals and regulatory timeline; construction cost and schedule in a hill state; demand risk and operating ramp-up post-opening; and liquidity risk for private hospitality equity. Each is addressed with specific mitigations. A pre-construction hospitality investment carries real capital-loss risk — we do not downplay that.

How do I perform due diligence?

After the introductory call and signed NDA, you receive access to the investor data room: title documents, approvals status, project DPR, financial model, operator conversations, and risk register. You can engage your own counsel and financial advisor for independent review. We are happy to facilitate a site visit for serious prospects.

Can I visit the site before investing?

Yes. Site visits are arranged for qualified prospective investors after the introductory call. The nearest airport is Pantnagar; the drive from Delhi is roughly a day. We coordinate with the local team to walk you through the ridge, view lines, and proposed footprint.

How frequently will I receive updates after investing?

Quarterly written investor updates are standard — covering construction progress, approvals, budget-versus-actual, and material events. Annual in-person investor meetings are planned as the project moves into construction. Material decisions (brand signing, significant cost changes, etc.) are communicated promptly.

Can I exit before the target horizon?

Private hospitality equity is inherently illiquid, so early exit is not guaranteed. That said, we document secondary mechanisms in the shareholder agreement — rights of first refusal, consent requirements, and permitted transfer windows — so a structured secondary is possible if another investor wants to take your position.

How is the investment taxed?

Indian tax treatment depends on instrument (equity vs CCDs), holding period, and investor residency. We do not give tax advice. Our counsel can introduce you to Indian tax advisors who regularly work with NRI investors in hospitality real-asset structures.

Who is behind the project?

The founding team's profile is shared during the introductory call and in the data room. This FAQ is intentionally company-forward rather than founder-forward at the public-interest stage; the people behind Paradise Cliff are directly accessible to qualified prospective investors.

What happens if the raise does not close?

We have structured the project so that the land position is stable regardless of tranche close timing. If we do not close the full ₹10 Cr, we proceed with a smaller initial tranche focused on approvals and enabling works, and reopen the round at a revised milestone. We do not deploy unrealistic assumptions to force a close.

Didn't find your question? Write to info@paradisecliff.com or use the Expression of Interest form. We respond personally within within 3 working days.

Ready to take the next step?

Share your profile through the Expression of Interest form and we will come back with the investor teaser and a proposed time for an introductory call.

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