TMT steel on barter against ready flats

Barter

Steel now, settled half in cash and half in ready units

For developers sitting on completed but unsold inventory, steel can be paid for partly in units instead of cash. It frees your project to keep moving without drawing down more debt.

The situation is familiar to every developer. The project is funded on paper, but the money is sitting inside finished flats that have not sold, and the next tower still needs 400 tonnes of reinforcement. Borrowing against that inventory is expensive. Discounting it publicly damages the price for the whole project. Barter moves the steel without touching either.

How a barter deal is structured

1. Requirement and inventory are matched. You share the steel schedule and the unsold units you are willing to part with — carpet area, floor, facing, OC date.
2. Unit value is fixed. We agree a value 25 to 30 per cent below the prevailing market rate for that project, in writing, before any material moves.
3. Due diligence. Title search, encumbrance certificate, OC, society or association clearance, and confirmation that the unit is free of any bank charge.
4. Agreement. Two documents — a supply agreement for the steel and a registered agreement for the unit. Both legs carry their own GST treatment.
5. Execution. Cash leg is paid on normal advance terms and despatch begins. The unit is conveyed on the agreed schedule.

What we will not take

Units without an occupancy certificate. Under-construction inventory. Units with a live mortgage that the developer cannot clear. Properties with litigation, unclear title, or an unresolved society dispute. Locations where resale is genuinely illiquid. Saying this plainly saves everybody a month.

Who this suits

Developers with completed projects carrying unsold stock, builders finishing one phase while starting the next, and redevelopment projects where the corpus is tied up. It works best from 200 MT of steel upwards.

Every barter proposal is assessed case by case on location, project stage, title and saleability. A discussion costs nothing and takes about a week to conclude.