Eldeco Group Raises INR 275 Cr From Tata Capital Housing Finance Ltd.
The capital raised will enable Eldeco Group to fast-track the construction of the two projects and also pave the way for an exit to its existing investors
Real estate developer in North India, Eldeco Group, on Thursday announced to have raised INR 275 crore in debt from Tata Capital Housing Finance Ltd (TCHFL), a wholly-owned subsidiary of Tata Capital Ltd.
Eldeco Group plans to deploy the capital raised in mid-income residential projects in Delhi NCR.
The capital raised will enable Eldeco Group to fast-track the construction of the two projects and also pave the way for an exit to its existing investors.
“We are delighted to partner with TCHFL. Apart from tier-II towns of North India, the NCR is a major growth area for us. After the pandemic, the demand in housing has recovered and we are seeing good sales across our portfolio. Our focus is to expand our projects across North India and provide quality housing to the mid-income segment,” said Pankaj Bajaj, managing director, Eldeco Group.
Eldeco Group has so far delivered 175 projects with approximately 30 million square feet of real estate development. The fund infused by TCHFL will focus on Eldeco’s 2 residential mid-income projects in the NCR. Both the projects have been launched and are currently under construction. The first project is a 2.1 million square feet project in Noida and the second one is a 1.2 million square feet project in Sohna, Gurugram. Eldeco Group has currently invested INR 175 crore in both projects.
“This partnership gives us a great opportunity to serve our customers in NCR markets. We believe that this is a great time to buy a house or leverage real estate assets by using our attractive finance solutions that are tailor-made for our customer’s specific requirements. TCHFL offers customized mortgage solutions for both retail customers and developers across the country,” added Anil Kaul, managing director, Tata Capital Housing Finance Limited.
The two projects together have an estimated revenue potential of INR 1650 crore which is targeted over the next 4 years.