Adarsh Developers Repays Rs 750 crore Debt to Edelweiss Alternative Asset Advisors
Real estate firm Adarsh Developers has successfully repaid a structured finance facility of Rs 750 crore to Edelweiss Alternative Asset Advisors. The debt, raised in 2022, has now been settled, leading to a positive financial turnaround for Adarsh Developers.
Improved Financial Position
The repayment of the debt was made possible by Adarsh Developers’ operational cash flow and a new round of lower-cost refinancing from banks. This move has reduced the company’s cost of funds by 8-9 percentage points, thus significantly improving its financial position.
Initially raised at over 20%, the funds received from Edelweiss were used to revive residential projects and generate liquidity for Adarsh Developers.
Positive Returns for Edelweiss
According to an insider, the turnaround has yielded returns of 20-25% for Edelweiss Alternative Asset Advisors, providing high yields for investors in this private credit fund. This successful repayment highlights Adarsh Developers’ commitment to improving their financial stability.
Continued Development Projects
The funds raised from Edelweiss in 2022 were primarily allocated towards three projects in Bengaluru, totaling 2.5 million square feet and 900 plots. These projects, namely Adarsh Savarna, Adarsh Wellin Park, and Adarsh Lakefront, are currently under construction and scheduled for completion by the end of 2028.
Adarsh Developers further secured a loan of Rs 385 crore from two banks to support ongoing development operations. This loan was finalized on Thursday and has a refinancing rate of 12-13%.
Future Focus on Residential Development
As part of their strategic planning, Adarsh Developers aims to primarily focus on residential development in the coming years, with some attention towards commercial development. This shift in focus aligns with the company’s favorable financial position resulting from various ongoing projects and improved cash flow.
The successful repayment of debts highlights Adarsh Developers’ debt reduction strategy and commitment to achieving financial stability. In addition, the recent sale of 41 acres of land in Bengaluru to Singapore-based Mapletree Investments significantly contributed to reducing the company’s overall debt.
The Edelweiss loan repayment combined with Adarsh Developers’ improved financial standing reflects a positive outlook for the company’s future growth and real estate development projects.
Conclusion
Adarsh Developers has bounced back from significant financial challenges, successfully repaying its debt of Rs 750 crore to Edelweiss Alternative Asset Advisors. This repayment, made possible by operational cash flow and lower-cost refinancing, has significantly improved Adarsh Developers’ financial stability.
Moving forward, the company plans to focus on residential development while simultaneously exploring some commercial projects. With ongoing project constructions and a positive financial position, the future looks promising for Adarsh Developers in the real estate sector.
