NEW DELHI: Realty firm Macrotech Developers Ltd has reduced its net debt by 55 per cent in the fourth quarter of the last fiscal to Rs 3,010 crore with the help of internal accruals and equity fundraising. Its net debt stood at Rs 6,750 crore as of December 31, 2023. Macrotech Developers, which sells properties under the brand Lodha, is one of the leading real estate developers in India. The company’s net debt stood at Rs 3,010 crore as of March 31, 2024, down 55 per cent from the previous quarter, according to a regulatory filing. The net debt is 57 per cent lower than Rs 7,070 crore at the end of the 2022-23 fiscal. Surplus cash flow generated from the business, coupled with the raising of equity capital, helped the company in reducing the net debt. “On the back of strong operating cash flow generation and recently concluded equity raise, our net debt further reduced to Rs 3,010 crore,” the company said. The company had a target to bring down the net borrowings to Rs 6,000 crore level by March this year. However, it was able to trim the debt significantly, thanks to equity capital raise last month and growth in sale bookings. Last month, Macrotech Developers Ltd raised Rs 3,300 crore by selling shares to institutional investors. The company successfully closed its qualified institutional placement (QIP), which was oversubscribed nearly 3 times and witnessed traction from a diversified set of investors, including sovereign funds, pension funds and insurers. This was the fourth equity raise by Macrotech Developers in the last 36 months. It has raised over Rs 13,000 crore as equity cumulatively. Its existing shareholders like Capital Group, GQG, Nomura, ADIA, and HDFC Life enhanced their investment through this QIP. The institutional placement also saw new investors like Invesco Oppenheimer, Blackrock, Carmignac, Franklin Templeton, Norges, Lazard, APG and RWC participating in the latest funding round. “The significant demand from marquee investors enabled us to launch and close the QIP within hours of opening the book, a tremendous feat for the Indian housing industry,” said Abhishek Lodha, Managing Director & Chief Executive Officer of Macrotech Developers. With this capital raise, he had said that the company’s balance sheet has strengthened and would also help in improving profitability. Apart from equity capital raise, the company has been clocking healthy sales bookings and collection from customers against sales. In 2023-24, Macrotech Developers registered a 20 per cent growth in its sales bookings to a record Rs 14,520 crore from Rs 12,060 crore in the previous financial year. With this record of pre-sales or sales bookings, the company said that it has met the guidance of delivering consistent and predictable 20 per cent growth. On the overall property market, Lodha strongly feels that the housing industry is going to play a pivotal role in the country’s transition from a low-income economy to a mid-income economy by the end of the decade. “During this period, housing is going to be the key beneficiary as well as the driver of economic growth,” he had said last month. Lodha noted that all the structural factors are in place for significant growth in volumes. “We are in only the fourth year of a multi-decade-long housing cycle,” Lodha had said. Mumbai-based Macrotech Developers has a significant presence in Mumbai Metropolitan Region (MMR) and Pune. It has recently entered into Bengaluru housing market. The company has delivered 95 million square feet of real estate and is currently developing more than 110 million square feet under its ongoing and planned portfolio. Macrotech Developers buys land outright and also partners with landlords to create a land bank for future development.

Published On Apr 7, 2024 at 01:00 PM IST

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MUMBAI: The Reserve Bank on Friday said it has imposed a penalty of Rs 1 crore on IDFC First Bank and Rs 49.70 lakh on LIC Housing Finance for violation of certain norms.The penalty on IDFC First Bank has been imposed for non-compliance with certain directions on ‘Loans and Advances – Statutory and Other Restrictions’, the central bank said in a statement. In another statement, it said the penalty on LIC Housing Finance has been levied for non-compliance with certain provisions of the ‘Non-Banking Financial Company – Housing Finance Company (Reserve Bank) Directions, 2021’ issued by RBI. In both cases, penalties are based on deficiencies in regulatory compliance and are not intended to pronounce upon the validity of any transaction or agreement entered into by them with their respective customers. Meanwhile, the RBI has cancelled certificate of registration (CoR) of four NBFCs — Kundles Motor Finance, Nithya Finance, Bhatia Hire Purchase, and Jiwanjyoti Deposits and Advances. The four companies now cannot transact the business of a non-banking financial institution. Another five NBFCs have surrendered their CoR. These are — Growing Opportunity Finance (India), Invel Commercial, Mohan Finance, Saraswati Properties, and Quicker Marketing.

Published On Apr 6, 2024 at 09:09 AM IST

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NEW DELHI: Indiabulls Real Estate on Friday said the board has approved raising Rs 3,911 crore through the issuance of shares and warrants to investors, including the Blackstone Group and the Embassy Group.Global investment firm Blackstone will invest Rs 1,235 crore, while the Bengaluru-based Embassy Group will infuse Rs 1,160 crore. After the conversion of the warrants, the Embassy Group will hold 18.7 per cent while Blackstone will hold 12.4 per cent. In a regulatory filing, IBREL has informed that the board has approved “fund-raise via preferential issue of equity shares and convertible warrants, on a private placement basis, for cash consideration, aggregating to approx. Rs 3,910.93 crore”. The move is aimed at recapitalising its balance sheet and positioning the company for organic and inorganic growth purposes. These include capital expenditure for the completion of existing projects and new launches as well as proposed acquisitions, other working capital requirements and general corporate purposes. The board has approved the issuance of 9,13,55,606 fully-paid equity shares of a face value Rs 2 each of the company at Rs 111.51. It has also approved the issuance of 25,93,69,201 warrants, convertible into an equivalent number of equity shares, at an exercise price of Rs 111.51. These securities would be issued to certain entities of the Embassy Group, Baillie Gifford, entities controlled by funds managed by affiliates of Blackstone Inc. (Blackstone Real Estate Fund), funds managed by Quant Money Managers, Poonawalla Finance and other financial investors. The board’s approval is subject to the approval of the shareholders of the company and other requisite approvals. In the filing, IBREL has said the board has approved asset acquisitions worth Rs 1,853 crore to re-energise the business and fuel growth. Sachin Shah, executive director, IBREL, said, “We are excited to announce the recapitalisation of the company, which also includes four strategic asset acquisitions that boost our project pipeline. “We are grateful for the constant support of our two largest shareholders. We are thrilled that we have a roster of new blue chip investors who have come on board and validated the company and its growth prospects. The funds will allow us to complete our existing projects and pursue new opportunities. This investment is a culmination of the turnaround strategy that has taken place over the past 13 months.”

Published On Apr 6, 2024 at 08:56 AM IST

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Representative ImageMUMBAI: An entity promoted by the Shapoorji Pallonji Group raised ₹505 crore from Asia Pragati Strategic Investment Fund to complete its existing projects and repay debt raised from other lenders, said people with knowledge of the matter.Ricardo Constructions, a wholly-owned company of the SP Group engaged in the construction of residential apartments, raised the bonds from Asia Pragati Strategic Investment Fund, managed by PAG, a global alternative investment firm.PAG declined to comment. Shapoorji Pallonji and Co did not respond to ET’s request for comment.Asia Pragati invested in senior secured, unrated, unlisted bonds having five-year tenure maturing on March 31, 2029. The construction company offered 17.25% as payment in kind (PIK), which includes a 12% coupon payment. The difference between the coupon payment and PIK could be in the form of fees or shares, one of the persons cited above said.Ricardo Constructions raised funds to repay ₹405 crore debt taken from a Piramal group company and HDFC Bank, according to disclosures made by the company to the NSDL.The remaining funds will be used to complete the construction of a residential project in Mulund, a suburb of Mumbai. According to a media report published in May 2023, Nirmal Lifestyle, in association with the United States Tennis Association (USTA), launched the Mulund luxury residential project in 2009, but it failed to take off. Subsequently, Nirmal Lifestyle sold the rights to the project to Ricardo Constructions. The report stated that in February 2023, the MahaRERA extended the deadline to complete the project to March 2026.SD Corporation, a Shapoorji group company, has given an unconditional guarantee to the extent of ₹600 crore, while Honcho Properties has given an unconditional guarantee of up to ₹330 crore.

Published On Apr 5, 2024 at 08:49 AM IST

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NEW DELHI: Prestige Group has acquired 21 acres of land in Whitefield, Bengaluru for Rs 450 crore, the company said in a BSE filing.The acquired land will be planned for residential development spanning approximately four million sq ft of developable area, comprising around 1,800 apartments.Irfan Razack, chairman and managing director of the company said, ” This large-format project spans over four million sq ft of developable area, with a projected gross development value (GDV) of Rs 4,500 crore.”Venkat K Narayana, Group CEO of the company said, “We look forward to launching the project within the next three quarters and completing the development in four-year time.”

Published On Apr 4, 2024 at 07:08 PM IST

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The government-backed and SBICAP Ventures-managed last-mile financing platform, Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I) and realty credit fund Nisus Finance have invested a total over Rs 465 crore across two projects of Aliens Developers.One of the projects, Aliens HUB, is a large scale plotted development project and the second project, Aliens Space Station, is a mega mid-income housing project, both located in key micro markets of Hyderabad. Of this, Nisus has invested Rs 145 crore in both the projects and SWAMIH Fund has invested Rs 320 crore in the mid-income housing project with over 2,000 homebuyers. “Nisus and SWAMIH have earlier partnered on two other mutual investment opportunities. Our investment in the mid-income housing project will help provide delivery to over 2,000 homebuyers. This investment is centric to our strategy in the fund to generate significant returns through a strongly risk mitigated structure with high asset and cash flow cover,” Amit Goenka, MD & CEO, Nisus Finance.Nisus has invested the amount through its Real Estate Special Opportunities Fund-I (RESO-I), managed by Nisus BCD Advisors LLP. This investment is being utilized to take over the loans of the erstwhile lender Edelweiss and the balance for project expenses.The Nisus BCD Fund will hold a senior secured and exclusive primary security on the plotted development project on the developer’s owned land spread across 272 acres in Chennaram locality. The project is a township with a golf course and other modern amenities for a plotted golf course living. The township has a total 2,400 plots with an average area of 2,700 sq ft with an estimated topline of over Rs 1,200 crores.In the mid-income housing project, SWAMHI Fund has subscribed to rated debentures of Rs 320 crore issued by Aliens Developers and listed on the Bombay Stock Exchange (BSE). Both SWAMIH Fund and Nisus’ investment in this project will be utilised for the completion of the project.Nisus Finance has cash flow sharing in this second project spread over 15 acres with saleable area potential of 3.4 million sq ft across 13 high-rise towers in Hyderabad’s Tellapur locality. The project is nearly 70% complete and has achieved 75% sales so far. The project for which Nisus has partnered with SWAMIH Fund for investment, has a total revenue potential of Rs 2,200 crore.ET’s email query to SWAMIH Fund remained unanswered until the time of going to press.This investment by Nisus and SWAMIH will help in ensuring the project will be completed and delivered tower wise and fully exited in 8-12 quarters.Nisus Finance is focused on identifying highly value-accretive opportunities within real estate projects, offering enhanced yields and robust asset cover to unlock substantial value through structured capital. It makes opportunistic medium-term structured investments in mid-income, affordable housing, and plotted development projects.Nirmala Sitharaman, the finance minister, introduced the SWAMIH Fund in September 2019, designating it as a category II alternative investment fund. This initiative emerged in response to escalating worries about stalled projects adversely affecting homebuyers and posing potential risks to the banking system.In December 2022, the government invested over Rs 5,000 crore in this fund, taking its final value close to Rs 15,530 crore. This is among the biggest corpus raised by any funds in the country.

Published On Apr 4, 2024 at 08:51 AM IST

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Representative ImageMUMBAI: The Bombay High Court, citing evidence of ‘wilful, deliberate, and contumacious conduct’ by builder Paras Dedhia, directed the police inspector of NM Joshi Marg on Monday to immediately arrest him from the court premises and transport him directly to Arthur Road Jail. Dedhia is to serve a three-month sentence of civil imprisonment.The builder, as stated by Justice Abhay Ahuja, willfully breached undertakings given to the High Court and was absent on several dates, thereby interfering with the administration of justice. Additionally, the builder flouted a non-bailable warrant (NBW) and previous orders related to alleged defaults in redevelopment projects in the Chembur-Govandi area in 2013-14.Justice Ahuja in his order said, “If this conduct is not dealt with firmly, that may result in lowering the dignity and the majesty of this institution in the eyes of the public and in erosion of the faith that the people in the country repose in the judiciary and the rule of law.’’ The HC noted, “ Although he (Dedhia) is present in Court, he has not even apologized nor has he furnished any explanation for his willful and deliberate disregard of the orders of this Court.’’Previously, the High Court had documented Dedhia’s contumacious conduct, noted Justice Ahuja, observing that despite the police machinery being mobilized, Dedhia could not be apprehended. It was highlighted that Dedhia presented himself only after the matter had been called out, in view of the standing warrant of arrest and lookout circular.“The earlier orders of this Court are a testimony of his contumacious conduct,’’ the Judge said. Court receiver appointed in the case said possession of a land for construction of wing ‘B’ of project ‘Yash Signature’ at Arjun Gawand Estate, Opposite Telecom Factory, Sion Trombay Road, Mumbai 400 088 that has been demarcated by way of tin sheets and also taken symbolic possession of the project “Yash Heights” at Station Road, Govandi, Mumbai 400 088. The original tenants had alleged that Dedhia, the sole proprietor of Yash Builders, defaulted and failed to provide redeveloped tenements and transit rent amounting to crores of rupees to them over nearly 10 years. The High Court accepted the Court Receiver’s Report and granted time to the parties to review it and file a response by April 10, the date of the next hearing.

Published On Apr 3, 2024 at 09:02 AM IST

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Representative ImageThe government-backed and SBICAP Ventures-managed last-mile financing platform, Special Window for Completion of Construction of Affordable and Mid-Income Housing Projects (SWAMIH I), has invested around Rs 300 crore in realty developer Hubtown’s residential project in Ghatkopar suburb of Mumbai, said persons with direct knowledge of the development.The project, Rising City, is near the Eastern Express Highway and it consists of six towers with a total of more than 700 apartments, of which 550 apartments are already sold.“The definitive documents for the financing transaction were registered a few days ago and the first tranche of the funds have already been deployed for the purpose of the project completion that will provide relief to more than 550 homebuyers awaiting delivery of their apartments,” said one of the persons mentioned above.The project was launched in 2013 but was delayed for delivery due to regulatory issues related to height approvals in 2016 while the project was scheduled to be delivered in 2020. However, in 2023, the project received all necessary approvals.It was earlier a joint venture project between Hubtown, private equity fund IIRF, and three other developers. However, the other partners and fund has exited the project, and it is now being developed by Hubtown.“This funding is a result of our focus to ensure a win-win solution for all stakeholders, and we are committed to completing the project in the fastest possible time,” Hubtown spokesperson said in response to ET’s email query while confirming the development.Mumbai, the country’s largest and costliest property market, has been witnessing robust demand and sales activity over the last three and a half years. The uptrend and positive outlook have been helping in reviving several projects across the city.ET’s email query to SWAMIH Fund remained unanswered until the time of going to press.Nirmala Sitharaman, the finance minister, introduced the SWAMIH Fund in September 2019, designating it as a category II alternative investment fund. This initiative emerged in response to escalating worries about stalled projects adversely affecting homebuyers and posing potential risks to the banking system.In December 2022, the government invested over Rs 5,000 crore in this fund, taking its final value close to Rs 15,530 crore. This is among the biggest corpus raised by any funds in the country.India’s largest social impact fund’s investors include the government, which is the major sponsor of the fund, the State Bank of India (SBI), the Life Insurance Corporation of India (LIC), and HDFC.This fund has been a crucial part of the measures taken by the government to infuse liquidity in stressed projects to help homebuyers across the country get delivery of their stuck apartments.The civic body said that as Metro works are ongoing at several locations in the city, the contractors are contractually liable to pay the property tax of the casting yard plot.

Published On Apr 2, 2024 at 08:47 AM IST

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Representative ImageMUMBAI: India’s largest real estate investment trust, Embassy Office Parks, plans to raise up to $400 million from investors, two sources with direct knowledge said, as it looks to meet demand for office space from global and local giants.Embassy, which manages 45 million square feet (4.18 million square meters) of office parks, has clients including Google, Cisco and IBM who are bolstering their presence in the world’s fifth biggest economy. The property group has appointed investment banks Morgan Stanley and India’s Kotak to run the deal, which it expects to complete by June, said the sources, who did not want to be named because the talks are private. The funds raised would be used to repay debt and acquire land in the southern city of Chennai, where Embassy is looking to bolster its presence, both sources said. Commercial real estate is booming in India, with large local and global companies hiring in record numbers after the COVID-19 pandemic. In 2023, companies in India leased 61.6 million square feet of office space, and the year’s last quarter saw record quarterly leasing, consultancy firm CBRE said.That’s in contrast with markets such as the U.S., UK and Australia, where office occupancies have slumped with people working from home. Although companies in India too have ‘hybrid’ working models, many still need more office space to fit new hires and for back offices, which employ thousands. Embassy, Asia’s biggest office REIT, aims to seek board approval in coming weeks for the deal, which it plans to carry out via a Qualified Institutional Placement (QIP), a tool used by listed Indian companies to raise funds from mutual funds and other large institutions.With the boom in Indian office space, the deal is expected to attract foreign asset managers and mutual funds, said one of the sources with direct knowledge. Embassy and the banks did not respond to queries seeking comment.With properties in four cities – Pune, Mumbai, Bengaluru and the National Capital Region – Embassy has 245 occupants, mainly from the technology and financial services sectors. A large portion of those occupants are Fortune 500 companies. Private equity giant Blackstone, which used to own a controlling stake in Embassy, sold that down in recent years, fully exiting the company last year. Embassy’s units have risen 17% the past year, more than India’s two other listed REITs, but less than the broader NIFTY Realty index which has more than doubled in the same period. While Embassy focuses on offices, India’s broader real estate space, including residential and warehousing is seeing growing interest from investors as demand and prices skyrocket. For the December quarter, Embassy’s post-tax profit rose 6% to 2.3 billion rupees while its total income grew 5.3% to 9.8 billion rupees.

Published On Apr 3, 2024 at 08:45 AM IST

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GURUGRAM: Around 16 years after their launch, construction of two Unitech projects — Sunbreeze in Sector 69 and Vistas in Sector 70 — has started. The move comes after the realtor got the Supreme Court’s permission to start the construction. As many as 1,900 buyers have invested in these two housing projects, which were launched in 2008 and 2009. The flats were supposed to be delivered in 2012, but the developer failed to complete construction.Retired IAS officer YS Malik, who is also chairman and managing director of the company, said the tender process for the construction of both the projects has been completed and they are expected to be completed in phases in the next 18 to 36 months. While 680 of 888 flats have been sold in Sunbreeze, 1,241 of 1,287 homes in Vistas have been sold out so far, he said. According to officials, after the allottees booked the units between 2009 and 2011, the company was declared bankrupt and construction of both the projects came to a halt. Later, a board, including Malik as CMD and Ashok Yadav as CEO of the company, was constituted by the SC. He further said after getting the environmental clearance (EC) in March, construction of the project was started. Malik claimed “structural and health audit of all the towers” of both projects has been done by IIT Roorkee. “The structures have been declared safe with the suggestion of retrofitting,” he said. Homebuyers shared the ordeal that they have been facing as the projects were stuck. As a homebuyer at Unitech Sunbreeze, the past 15 years have been a “struggle”, said Himanshu Dube, a homebuyer. “The new resolution framework by the Unitech board, supported by the apex court, offers a ray of hope. We’re cautiously optimistic that their commitment to start deliveries of flats by the end of 2025 translates into tangible progress on the ground,” Dube said. “To end years of struggle and endless wait of homebuyers, the SC-monitored construction mandate to Unitech management is a welcome step. Now, the management needs to ensure that it delivers the expectations of homebuyers. Homebuyers are once again ready to trust and pay Unitech if it lives up to its commitments,” said another buyer.Piyush Gupta of Unitech Vistas said, “We are very much optimistic about completion of the project as per the timeline defined and approved by the apex court. He said allottees hope for fast progress in construction. We request them to pay their dues at the earliest so that construction does not get halted again.”

Published On Apr 2, 2024 at 09:05 AM IST

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