Eldeco Group, one of the leading real estate developers in north India, has raised Rs 275 crore in a debt round of funding from Tata Capital Housing Finance Ltd.
Eldeco Group plans to utilise the funding raised from the housing finance arm of diversified business conglomerate Tata Group for the creation of two mid-income residential projects in Delhi-NCR.
The first project is a 2.1 million square foot one in Noida and the second is a 1.2 million sq ft project in Sohna, Gurugram. Eldeco Group has already invested Rs 175 crore in both the projects.
Besides, the real estate developer claims to have so far delivered 175 projects with approximately 30 million sq ft of real estate development.
“Apart from Tier II towns of north India, the NCR is a major growth area for us. After the pandemic the demand in housing has recovered and we are seeing good sales across our portfolio,” said Pankaj Bajaj, MD at Eldeco Group.
Established in 1985, Eldeco Group operates in Lucknow through the BSE listed entity Eldeco Housing & Industries Limited (EHIL) and in the rest of India through the privately held Eldeco Infrastructure & Properties Limited (EIPL).
“This partnership gives us a great opportunity to serve our customers in NCR markets. We believe that this is a great time to buy a house or leverage real estate assets by using our attractive finance solutions that are tailor made for our customer’s specific requirements,” said Anil Kaul, MD at Tata Capital Housing Finance Ltd.
The two projects is said to have an estimated revenue potential of Rs 1,650 crore which is targeted over the next 4 years. The capital infused is also said to be providing exit to Eldeco’s existing investors.
In August, Eldeco Infrastructure and Properties Ltd also has partnered with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) -- a fund managed by HDFC Capital Advisors Ltd -- for a platform focused on the development of low-rise, plotted development projects in Tier II cities in National Capital Region (NCR).
