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Realty firm BPTP raises Rs190 crore from L&T arm for Faridabad projects

LiveMint logoLiveMint 19-07-2017 Madhurima Nandy

Bengaluru: Real estate developer BPTP Ltd has raised around Rs190 crore from L&T Finance Holdings Ltd to complete two residential projects in Faridabad, a company spokesperson said.

Property consultant Knight Frank India was the adviser to the transaction.

“We have now been able to secure construction finance for our two projects in Faridabad—Park 81 and Parklands Pride. We are confident we will commence offering possession of Pride in a phased manner starting this October, and we are already delivering units across Park 81, as we speak. We would also like to mention that we will be delivering over 2,000 units this year,” a BPTP spokesperson said. L&T Finance Holdings did not respond to queries.

BPTP owns nearly 2,000 acres in Faridabad, located in the National Capital Region (NCR) centred around Delhi.

It has utilized only 1,000-1,100 acres, and plans to form joint ventures with larger builders to develop the rest.

“Unlike most debt deals in real estate today, which are primarily to refinance existing debt and give exits to lenders, the L&T-BPTP transaction is a straightforward one for project construction,” said a person familiar with the transaction, asking not to be named.

In the recent past, several builders in NCR have raised debt, mostly for refinancing or construction. In June, Saha Groupe raised Rs200 crore by selling NCDs to ECL Finance Ltd. In the same month, Piramal Finance Ltd, a unit of Piramal Enterprises Ltd, lent Rs325 crore to Mahagun Group. In January, it had lent Rs425 crore to Prateek Group.

In July, BPTP Ltd sold 14.8 acres in Dwarka Expressway to Mumbai-based Godrej Properties Ltd and is in the process of selling a second parcel around the same location to another developer. The two sales will help the firm raise around Rs500 crore.

BPTP also sold its Hitec City plot in Hyderabad to Bengaluru-based developer Salarpuria Sattva Group this year.

NCR has been the worst hit in the four-year-old real estate slowdown, sales in Noida and Greater Noida have fared marginally better than Gurugram.

“We have raised around Rs500 crore of debt in the last year which isn’t fully utilized, so we are trying to strike a balance between raising debt and equity,” BPTP chairman and managing director Kabul Chawla told Mint in a telephone interview earlier this month.

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