Wadhwa Group Raises Rs. 110 Crores to Fund Luxury Project

Settlers India Wadhwa Group Raises Rs. 110 Crores to Fund Luxury Project

Wadhwa Group Raises Rs. 110 Crores to Fund Luxury Project

17th December 2020

Wadhwa Group Raises Rs. 110 Crores to Fund Luxury Project

A Mumbai Based real estate developer, Wadhwa Group has planned Rs. 110 Crore of debt for JM Financial Products Ltd, a NBFC (Non-Banking Finance Company), for a luxury project located in the heart of Mumbai. They are also about to raise Rs. 175 Cr to Rs. 200 Cr. as private equity funding for that project, according to chief operating officer and chief financial officer, Wadhwa Group, Srinivasan Gopalan. In this project, there will be 54 residential units at the price of around Rs. 10 Crore each. The deal has been confirmed by a spokesperson of JM Financial. Wadhwa Group is also thinking to invest Rs. 175 to 200 crores on same project as private equity (PE) funding. Luxury living spaces of around Rs. 10 to 12 crore are appealing huge demand, unlike various projects in the range of Rs. 3 to 8 crore. The economic downturn has affected them and they are weighed down due to huge supply, according to Chief Executive Officer, residential services, Jones LaSalle, Om Ahuja. There are only limited numbers of PE companies interested to invest in residential real estate. In residential projects, the PE investment has been dropped to $156 million by 48% in first six months of 2013 and total real estate investment was dropped to $276 million by 46% on the same period, as per the report on 30th July by a real estate firm Cushman & Wakefield. Investors usually hesitate of raising funds on macroeconomic condition in Greenfield projects. Over the past couple of years, the demand has been raised for NBFC money and it will keep on growing over the financial year, according to executive director, capital transactions Knight Frank India, Rajeev Bajrathi. According to Gopalan from Wadhwa Group, the company has invested around Rs. 100 to 200 crores for all the five residential projects. In this financial year, they are hoping to launch these townships. By November, they are proposed to launch three projects from these five projects.  Most of such projects are being held in local developers’ partnerships. For slum rehabilitation, the company got Rs. 350 crores from IIFL Realty Fund. For bookings and more information on WADHWA ATMOSPHERE 

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