Adarsh Developers, a Bengaluru-based realty company, is about to collect a total fund of Rs 950 crore from three investors Edelweiss, HDFC Realty Fund and Altico Capital. The raised amount will help begin the construction work in five of its residential projects.
The company has already signed agreements with Edelweiss and HDFC Realty Fund to raise about Rs 350 crore each. The developer is in talk with Altico Capital, a non-banking finance company (NBFC), to have another Rs 250 crore. All the amounts will be raised through structured debt which is adopted by many companies recently.
Adarsh is keen to use the amount in the construction of its five residential projects on the outer ring road in Bangalore. The projects are in approval stage including for land acquisition. The company is getting a boost from the announcement of the new Transferable Development Rights (TDR) policy that may grant additional built-up area to a landowner in return for the portion of a plot acquired for a public project.
“Unless you have sufficient area to develop through TDR, you will not get the desired profitability. Now with the new policy, everything has started to move. Moreover, the market was very bad post demonetisation. We did not want to launch in a big way and then have no sales for two to three months,” says the source at Adarsh Developers.
Source: ET Realty