Real estate development company, Omaxe Tuesday said it has raised Rs 440 crore in form of debt from alternative investment firm, Varde Partners.
The capital will be used to expedite the construction and delivery of its projects as well as for expansion. Currently, it is developing integrated townships in New Chandigarh, Lucknow, Ludhiana, Indore and Faridabad.
The company is also developing a multi-level parking cum commercial project under the PPP (public- private partnership) model with the North Delhi Municipal Corporation (NDMC) in Delhi. It is scheduled for delivery this fiscal, the statement noted.
“We will double down on investments in the cities driving our growth to develop new-age and world-class residential, commercial and retail destinations. We are not doing just this one transaction with Varde but looking to create a long-term partnership across projects,” said Atul Banshal, Director Finance, Omaxe Ltd.
Founded by Rohtas Goel, Omaxe diversified into the real estate sector in 2001 and got listed in 2007. Currently, it has a presence in 27 cities across 8 states and has a diversified product portfolio including hi-tech townships, integrated townships, group housing, shopping malls, office spaces, and a hotel.
Varde Partners, investor in Omaxe, was founded in 1993 and it has invested more than $90 billion since its inception and manages over $13 billion on behalf of a global investor base. It invests across corporate and traded credit, real estate and mortgages, private equity, and direct lending. In India, Varde Partners has invested more than $2 billion in India. Last year, they offered a $55 million senior construction financing facility for two pre-leased office developments of Phoenix Group in Hyderabad.
Omaxe said in the last two financial years it has repaid net Rs 550 crores to lenders as principal payment and reduced its debt from Rs 1400 crore to Rs 850 crore. In the first nine months of FY 2021-22 Omaxe sold properties worth Rs 1155 crore, the statement said.
