Well-known real estate developer BPTP Limited has raised a sum of approximately Rs.190 crore from L& T Finance Holdings. The funds have been raised for completing two of its residential projects located at Faridabad. The development has been confirmed by the company and leading property consultant Knight Frank India was also the adviser for this deal. According to BPTP officials, the company has secured construction finance for two projects, namely Parklands Pride and Park 81 at Faridabad. Officials stated that the company is confident of providing possession for Parklands Pride from October 2017 in phases while housing units are already being delivered at Park 81.
The company is targeting delivery of more than 2, 000 units in 2017 according to spokespersons. L& T Finance Holdings has not issued any official confirmation yet. BPTP Limited owns close to 2, 000 acres in Faridabad which is one of the fast growing realty hubs in the NCR (National Capital Region). The company has utilized 1,000-1,100 acres out of this land bank and is planning to enter into joint ventures with bigger real estate developers for developing the remaining portion of land.
According to sources, the transaction between BPTP Limited and L& T Finance Holdings is not like regular debt deals in the Indian real estate sector which are majorly for refinancing existing debt and also offering exits to previous lenders. This is a simple project construction based funding deal according to reports. Several developers in the NCR have been raising debt over the last few months, mostly for taking care of construction finance or even for refinancing existing debt. The Saha Groupe raised Rs.200 crore in June, 2017 through the sale of NCDs to ECL Finance Limited while Piramal Finance Limited, which is a division of Piramal Enterprises Limited, also pumped in Rs.325 crore as a loan for the Mahagun Group. It had previously lent Rs.425 crore to the Prateek Group in January, 2017.
In July, 2017, BPTP limited sold 14.8 acres along the Dwarka Expressway to Godrej Properties Limited which is based in Mumbai. It is also looking to sell another land parcel in the same stretch to another real estate player. These two transactions will help BPTP Limited raise approximately Rs.500 crore in funding. BPTP has also sold its plot in Hitech City in Hyderabad to the Bangalore-based Salarpuria Sattva Group earlier in 2017. The NCR has been badly affected by a real estate slump over the last 3-4 years and sales of property have been slightly better in Greater Noida and Noida as compared to Gurgaon.
According to the Chairman & Managing Director at BPTP, Kabul Chawla, the company has raised close to Rs.500 crore as debt in the last year which has not been utilized fully and hence it is striving to maintain the balance between equity and debt.
