The US-based private equity major Apollo Global Management has invested Rs 400 crore ($60 million) in Noida-based developer Logix Group through a structured finance transaction, the Indian company said in a statement.
The capital will enable Logix to complete construction of all its exiting residential and commercial projects, the statement said.
Shakti Nath, chairman and managing director, Logix Group, told VCCircle, “It is a structured debt transaction at holding company level. We have pledged some shares and also given some projects as collateral.”
This does not entail an entity level stake for the investor, he added.
“We value our long-term relationship with Apollo and appreciate their confidence in our team. This facility helps us achieve financial closure on all the group’s ongoing developments and will enable us to maximise the value of our portfolio of office and retail assets. As a result, we will deliver possession of approximately 8,400 homes to customers over the next 12 to 18 months,” Nath said in the statement.
Logix has a bunch of ongoing projects in and around Noida - NeoWorld, Empire Estate, Blossom County, Blossom Greens and Blossom Zest.
“We are delighted to partner with Logix which has built several landmark projects in Noida and look forward to working closely with them on their next phase of growth,” said Philip Mintz, Apollo Asia Real Estate India head.
The development comes almost three months after VCCircle first reported that the developer is talking to Apollo to raise fresh funds for its projects. This is the second collaboration between Apollo and Logix. The duo had earlier developed an office park in Noida together (Logix Cyber Park), which Apollo had exited in September 2015. Apollo had got exposure to Cyber Park in Noida in 2010 after it acquired Citi Property Investors, which had invested back in 2006.
The developer had claimed that it bought back the 50% stake of Apollo in the project through internal accruals and gave a whopping exit multiple of 10x on an investment of Rs 72 crore. It also created exit for ICICI Prudential PMS, a part of Prudential ICICI Asset Management Co, from a residential project last year.
Apollo Global Management, which focuses on sectors such as logistics, textiles and real estate with corpus of over $90 billion, recently also exited Mumbai-based Ahuja Constructions’ luxury project Ahuja Towers at Worli for Rs 460 crore on an investment of Rs 200 crore.
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