Global financial services giant Goldman Sachs has invested Rs 610 crore ($85 million at current exchange rates) through debt across real estate and hotel arms of Vatika Group.
The Gurugram-based realty group will use Rs 245 crore to expedite the construction of the first phase of a commercial project located on NH-8, which will be developed in 3 phases comprising 2.2 million sq ft, Vatika said in a statement.
A part of the corpus will also be used to refinance the exposure of Piramal Enterprises to the project.
Goldman Sachs has also extended a debt facility to Vatika Hotels to the tune of Rs 365 crore, facilitating a pre-payment to Piramal Enterprises, the statement added.
Gaurav Bhalla, managing director at Vatika Group, said the investment will help in delivering the project on time. “Such debt instruments being extended by mature funds such as Goldman Sachs is the need of the hour, and ensures completion of assets while allowing for partial refinance,” he said.
A spokesperson for Vatika Group confirmed the development to VCCircle. He said the global investment bank has exited its earlier investments in Vatika Group and come back with fresh investment.
The latest development marks the third tie-up between Goldman Sachs and Vatika Group. Back 2014, it had invested Rs 255 crore ($40 million) through an equity deal in Vatika Hotels. It also invested Rs 100 crore in Vatika Business Park back in 2007.
In 2014, Vatika Group had separately forged two joint ventures (JVs) with Singapore's sovereign wealth fund GIC to develop two residential projects on Dwarka Expressway.
Vatika Group has delivered 42.3 mn sq ft, and has a wide range of commercial projects spread across prime locations in Delhi NCR including MG Road, Golf Course Road, Golf Course Extension Road, Sohna Road, NH-8 and Mathura Road.
Goldman Sachs recent deals
In January this year, Gurugram-based FabHotels said it will raise the money from Goldman Sachs, which is also the existing investor of the budget hotel operator.
The global investment bank led the Series C funding in beauty e-tailer Purplle in December 2019.
In March 2019, Bengaluru-based Versé Innovation Pvt. Ltd, which operates local-language content and news aggregator Dailyhunt, raised $173 million from Goldman Sachs’ hedge fund.