Alternative investment firm Apollo Global Management has exited its around two-year-old investment in the residential and commercial projects of Noida-based developer Logix Group.
The developer bought back the non-convertible debentures it had issued to Apollo Global, Mint reported, citing Logix chairman and managing director Shakti Nath.
The developer had raised the corpus via structured debt to complete construction of all its residential and commercial projects, it had said two years ago.
This was Apollo's second investment in Logix Group. Apollo had got exposure to the Logix Cyber Park in Noida in 2010 after it acquired Citi Property Investors, which had invested in the office project in 2006. Apollo exited this project in September 2015.
At the time, Logix had claimed that it bought back the 50% stake of Apollo in the project through internal accruals and that the investment firm earned 10 times its investment of Rs 72 crore.
Apollo, which focuses on sectors such as logistics, textiles and real estate with a corpus of over $90 billion, has recently also exited Mumbai-based Ahuja Constructions’ luxury project Ahuja Towers at Worli for Rs 460 crore on an investment of Rs 200 crore.
Logix has a bunch of ongoing projects in and around Noida. These include NeoWorld, Empire Estate, Blossom County, Blossom Greens and Blossom Zest.
Previously, Logix raised funding from ICICI Prudential PMS, the real estate investment arm of ICICI Prudential Asset Managemement.
India's real estate market has been going through a tough phase with sales remaining slow for the past few years. Given the market condition, developers are going for multiple rounds of funding to finish construction of projects. Funding has now been dominated by refinancing where one investor has to be brought on-board to give exit to the existing one.