Real estate dedicated private equity firm Red Fort Capital Advisors Pvt Ltd has committed to invest Rs 1,000 crore ($163 million) in a string of projects to be developed by Gurgaon-based privately held property developer Lotus Greens Developers Pvt Ltd, the company said on Monday.
"Red Fort Capital has already committed Rs 365 crore. We will use this fund for development of our various projects in Delhi NCR region," said Nirmal Singh, founder of Lotus Greens.
The Rs 365 crore investment, as previously reported, was made in the form of private placement of listed non-convertible debentures (NCD) of Bright Buildtech Pvt Ltd (BBPL), a part of the Lotus Greens. Brickwork Ratings (BWR) has assigned BWR B+ rating for the unsecured NCD issuance of BBPL.
BBPL will undertake the plotted township project comprising over 100 acres in Sector 89 and 90 in New Gurgaon. It proposes to use the proceeds of the NCD issuance for the acquisition of development rights, land parcels, development and construction of township projects by the group.
"This is one of the largest private equity investments in Indian real estate in recent times and is a clear demonstration of Red Fort Capital’s faith in long-term growth prospects of Lotus Greens. Very soon we will launch our new township project in Gurgaon followed by group housing on Yamuna Expressway," said P Sahel, vice-chairman, Lotus Greens.
The township is expected to be launched in the next quarter. The total cost of the project is Rs 1,489 crore to be funded by NCD proceeds and customer advances. Lotus Greens plans to develop the township which will comprise 2.18 million sq ft of residential development and 0.2 million sq ft of commercial development.
Lotus Greens has interest in commercial developments, hospitality, health care and education.
Red Fort Capital has done deals across different segments of the real estate sector spanning different markets in India. It has assets under management of close to $1 billion and had raised a $500 million fund early last year. It has already invested half of the fresh capital.
(Edited by Joby Puthuparampil Johnson)