­Experienced management with an established track record of operations
KDPL was incorporated in 2004 and is part of the Ahmedabad-based ‘City Gold’ group, promoted by Mr. Chimanlal Agrawal and Mr. Sanjay Agrawal. Mr. Chimanlal Agrawal has over four decades of experience in construction, real estate development, and leasing of space, and Mr. Sanjay Agrawal has around two decades of experience in the industry.

The group generates its revenue from film exhibition, real estate development, and leasing of space and has developed more than 25 projects spread over 42 lakh square feet of commercial and residential space in the Ahmedabad region. The extensive experience of the promoters, along with its established track record of operations, is reflected in the long-term lease agreements with its reputed tenants.

Reputed clientele
KDPL has entered into long term lease agreements with reputed clients like Reliance Projects & Management Services Limited, Tata Communications Limited (TCL), Tata Teleservices Limited (TTL), Amazon, and Samsung, with a total combined leased area of 629,102.1 sq. ft. These agreements have a tenure ranging from 9 to 20 years includes maintenance charges and price escalation of 12 to 18 percent in every 3 years. Additionally, the company earns revenue through its film exhibitions and food courts. Furthermore, there is vacant space of ~18,000 sq ft, any tie up of which leading to improvement in cash flows shall be a key rating monitorable.

Presence of DSRA, escrow account with waterfall mechanism
The entity is required to maintain DSRA equivalent to one quarter of debt servicing (principal & interest). In addition to that, all the lease rentals route through the escrow account and payment is utilized as per the waterfall mechanism.
Acuité believes that such structured mechanism allows the entity to have better control over its cash flows and debt servicing abilities.

­Significant loans and advances to related parties
The debt raised by the company has majorly been passed on to the group companies in the form of loans & advances, Rs 109.82 Cr. as on March 31, 2025 (Prov.) (Rs 22 Cr. as on March 31, 2024). Therefore, timely recovery of these shall be a key rating monitorable.

Contract renewal & interest rate risk
The company’s ability to meet its repayment obligations depends on the continued and timely flow of rentals as per the agreed terms. Events such as increase in interest rates, delays in receipt of rentals, early exits, or renegotiations by lessees due to lower-than-expected business performance may disrupt cash flow streams, thereby affecting the company’s debt-servicing ability. Moreover, the occupancy levels is highly dependent on timely renewal of lease agreements which shall remain a key rating monitorable.