Lotus Greens in talks with Clearwater and SSG to raise $72M

Noida-based real estate developer Lotus Greens is in talks to raise Rs 450 crore ($72 million) from private equity firms Clearwater Capital and SSG Capital Management for its upcoming project in Noida, sources told VCCircle.

VCCircle had first that the developer is looking to raise Rs 500 crore for its upcoming project in Noida. The proceeds from the fundraise will be used by the realtor to partly pay for a 200-acre land parcel it recently acquired from Noida Authority.

Earlier in the day The Economic Times said that the firm is in talks with Clearwater and SSG Capital. According to the report, funds will be raised through non-convertible debentures (NCDs).

The fund is being raised for a project called Lotus Greens Sports City. Located in Sector 79, Noida, the project is spread across 10 acres and will offer 3&4 BHK apartments. Phase I of the project, which is expected to throw 600 units, is scheduled for launch soon.

An email query sent to P Sahel, vice chairman, Lotus Greens, to confirm the development did not elicit any response till the time of filing this report. Emails written to spokesperson of Clearwater and SSG Capital Management did not immediately elicit any response.

Sources indicate that the process of fundraise from Clearwater and SSG is in the documentation stage and is likely to be sealed soon.

With approximately $2 billion assets under management, Clearwater provides capital for financial restructuring, operational turnarounds and distressed investments and also makes credit investments in small to medium sized enterprises operating in Asia excluding Japan.

Headquartered in Hong Kong, SSG Capital Management seeks to make investments in special situation opportunities. The firm seeks to invest in Greater China, India and Southeast Asia.

Lotus Greens, present across residential & commercial realty, hospitality, education and healthcare verticals, has four ongoing projects in Noida and one in Gurgaon.

Recently, it secured funding from Piramal for its project Arena which is a luxury residential project spread across 10 acres in sector 79 and offers 3 & 4 BHK apartments ranging from 1,495 sq. ft. to 2,395 sq. ft.

Late last year, real estate focused private equity firm Red Fort Capital committed to invest Rs 1,000 crore ($163 million) in a string of projects to be developed by the realtor.

Despite the tough time NCR real estate market is going through, a clutch of developers has secured funding from private equity investors, mostly in the form of structured debt.

Recently, ASK invested Rs 127 crore in an upcoming project of another Noida-based realtor ATS infrastructure. Milestone, which is in the process of deploying dry powder from its last fund and raising capital for a new domestic fund, has sealed a deal with Assotech for its Gurgaon project Breeze. The deal has seen investment of roughly Rs 50 crore. Landmark recently made an investment of an undisclosed amount in the last phase of Unitech's project in Gurgaon Nirvana.

(Edited by Joby Puthuparampil Johnson)

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