Global funds pump debt into Indian realty
financialexpress.comGlobal alternative funds are making most of the demand for credit from property developers . In recent months, they have signed a spate of structured debt deals with real estate developers in India.
These funds include, Ares Management Corporation, Varde Partners, PAG, among others who have lent over Rs 1,500 crore, sources in the know said.
The global funds are lending for different kind of purposes from refinancing old loans to pre appoval expenses to rescuing distressed assets towards which banks are not allowed to lend. The limited amount of lending by non-banking financial companies to real estate is also helping global investors to cut deals, experts said.
For example, HDFC Capital along with Ares Management Corp has lent about Rs 500 crore to Bengaluru based Adarsh Developers.
“It is for refinancing existing debt and additional growth capital for the company,” said sources. HDFC Capital did not comment on the subject while Ares declined to comment. However, B M Jayeshankar, chairman and managing director of Adarsh Developers confirmed the development
US based alternative investment fund Ares has done a couple of deals in the recent past.
Late last year, Ares backed Acre Asset Reconstruction Co (ARC) purchased a handful of loan accounts including that or Vatika group ane Nirmal Lifestyle from Housing Development Finance Corp (HDFC) aggregating to Rs 1,180 crore, reports said.
PAG, Asia ‘s biggest multi asset manager, has lent about $1.3 billion to property developers in the last four years of which 90 per cent was in last two years, fe had reported earlier.
Earlier this year, PAG collaborated with Shapoorji Pallonji Real estate, Indiabulls Housing Finance and Lokhandwala Kataria Constructions for reviving
