Adarsh Developers has mobilized Rs 1,300 cr from various financial institutions like HDFC Realty Fund, JM Financial, Kotak Realty Fund and Piramal Fund Management in order to expand its residential portfolio in Bengaluru. “We have raised all the money in the last two to three quarters,” said chairman BM Jayeshankar. “We plan to raise an additional Rs 1,000 cr as we expect the market to pick up in the near future.”
The fundraising comes at a time when lenders, especially non-banking finance companies (NBFCs), are treading quite cautiously leading to slowing down of refinancing of debt of real estate developers.
New funding has also been affected in the last few months, post the default by Infrastructure Leasing & Financial Services. But this market condition did not cause any hurdles for Adarsh Developers, said Jayeshankar, also its managing director.
“We haven’t faced any issues while raising the money despite the cash crunch in the market for the last four months,” he said.
The company plans to use the money to develop about 7,000 residential units including affordable and luxury houses across Bengaluru. Over the next 10 months, it plans to launch six residential projects across affordable and luxury, priced from Rs 38 lakh to Rs 3.5 cr.
Adarsh Developers is entering affordable housing for the first time. Demand in the segment is stronger than elsewhere in real estate, thanks to government schemes such as the Pradhan Mantri Awas Yojana.