Bengaluru-based Adarsh Developers has raised around Rs 1,300 crore ($181 million) from a clutch of investment firms that include HDFC Realty Fund, Kotak Realty Fund and Piramal Fund Management, The Economic Times said.
The proceeds would be used by the developer to expand its residential portfolio in its home market. The fundraise from these institutions was concluded in the last few quarters. The developer, led by chairman and managing director BM Jayeshankar and director BM Karunesh, aims to raise another round of Rs 1,000 crore in the near future to mid-future.
The report quoted a company spokesperson as saying that the developer would be launching around 7,000 residential units across affordable and luxury segments. The developer, established in 1988, is tapping into the affordable segment at a time when the market has moved in the favour of rightly priced units for end-consumers in the mid-market segment. Adarsh Developers has projects across commercial, residential and hospitality segments.
Given the sluggishness in the segment, developers are increasingly launching products which fall in the middle and affordable segments, which still find traction among buyers.
Real estate financing has been adversely affected given the liquidity crisis in the non-banking financial company (NBFC) space. NBFCs and housing finance companies (HFCs) have a huge exposure to the real estate sector but given the performance of the housing market, servicing the debt has become an uphill task for developers.