Century Real Estate raises ₹450 crore from Edelweiss to buy land and pay debts
₹450 crore of debt financing from Edelweiss Alternative Asset Advisors Limited, the asset management arm of financial services firm Edelweiss Group, a top company executive said. The Bengaluru-based developer will use around 40% of the funds to buy a 72-acre land parcel for a plotted residential project near the international airport at Devanahalli in north Bengaluru. It will use the rest of the money to repay existing debt and as working capital for new and existing projects.
Century Real Estate, one of the largest landowners in Bengaluru, has largely focused on the north of the city where it has a significant land bank. Century Real Estate managing director Ravindra Pai said in an interview, “Bengaluru’s residential market has been robust post-covid. In FY24 we achieved a sales milestone of ₹1,000 crore.
We aim to double sales to ₹2,000 crore in FY25. We have a significant pipeline of inventory, including residential and plotted projects." An Edelweiss spokesperson declined to comment on the transaction. Property consultants said debt transactions in housing projects have increased of late because of sales momentum in the residential sector and the consequent need for working capital.
A number of private equity and real estate credit funds such as Nisus Finance, PAG Asia, ASK Property Fund, HDFC Capital among others have been active in the residential space. Prestige Group recently said Abu Dhabi Investment Authority (ADIA) and Kotak AIF would invest ₹2,001 crore in its four residential projects in a quasi-debt deal, and Nisus Finance, with its sponsor and strategic partner BCD Group, invested ₹105 crore in a subsidiary of Shapoorji Pallonji Real Estate. “Domestic investors are increasingly gaining ground in real
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