Mumbai-based Edelweiss Financial Services has exited its debt investment in a residential real estate developer, ahead of the the repayment date, the company said on Wednesday.
Edelweiss Financial Services, part of the Edelweiss Group, has exited its debt investment of Rs 175 crore in Mumbai-based developer Paradigm Realty primarily through cash flows from sales. The rest was repaid through a debt facility of Rs 135 crore, used for partially repaying the debt.
The loan, raised about two years ago for the development of the residential phase of a mixed-use township in Mumbai, was refinanced at an interest rate of 13% per annum. The repayment was completed two quarters ahead of the schedule.
The debt investment helped Edelweiss Financial Services earn returns to the tune of 18-19%.
While the capital was used for the development of the residential phase of 102 Downtown, a landmark 10-acre mixed-use township in Oshiwara, Andheri West, the developer has started the development of the second phase of the project.
The property is being developed jointly with Prozone Realty Ltd. It covers an area of 4.5 million square feet, which includes 1.3 million square feet of residential spaces and a shopping center.
“Paradigm Realty has also announced plans for further funding closures in the coming months. The group is in advanced discussions to secure Rs 125 crore for its Borivali (West) project at a rate of below 11% per annum, alongside negotiations for raising over Rs 300 crore for three upcoming projects,” the real estate developer said.
As per its annual report for the fiscal ended March, about half of Paradigm Realty’s strategic debt of Rs 300 crore was repaid in the fiscal year. Its annual revenues, on the other hand, grew from Rs 400 crore in FY23 to Rs 550 crore in FY24.
Its existing projects are located in Mumbai’s western suburbs including Santacruz (West), Khar (West), and Borivali (West). It plans to expand to markets such as Karjat, a burgeoning micromarket for luxury housing near Mumbai.
