India Infoline Finance Ltd (IIFL Finance), an arm of financial services company India Infoline or IIFL, along with some of its private clients, has invested Rs 150 crore in real estate developer Wadhwa Group’s township project in Navi Mumbai, according to a report published by Mint.
IIFL Finance has picked non-convertible debentures from Mumbai-based Wadhwa group for the project.
The realty firm had signed a pact with Bahrain-based Islamic investment bank Gulf Finance House three years ago to develop the land owned by the bank, the newspaper said. Once the entire project is completed, nearly 1.2 million square feet of the developed areas will be given to Gulf Finance House. This will be in addition to the upfront payment for the land.
The township project will be developed on a 500-acre piece of land, which has already been acquired. Wadhwa Group will now start work on infrastructure such as roads and sewage.
The project is expected to be launched in a year or so, Srinivasan Gopalan, chief financial officer and chief operating officer, Wadhwa Group, told the paper.
The Mumbai-based real estate developer is also eyeing to raise more money for the project and scouting for active developer partners.
Last year, Wadhwa Group raised nearly Rs 350 crore from real estate fund of IIFL for its high-end residential project in Chembur in Mumbai. In 2012, it had garnered Rs 110 crore in debt from JM Financial Products Ltd to finance its luxury project in central Mumbai.
(Edited by Joby Puthuparampil Johnson)