Property developer Eldeco secures debt financing from Tata’s housing finance arm
Eldeco Group, a leading property developer in North India, has raised Rs 275 Crore in a debt funding round from Tata Capital Housing Finance Ltd.
Eldeco Group plans to use funds raised from the housing finance arm of diversified business conglomerate Tata Group for the establishment of two middle-income residential projects in Delhi-NCR.
The first project is a 2.1 million square foot project in Noida and the second is a 1.2 million square foot project in Sohna, Gurugram. Eldeco Group has already invested Rs 175 crore in the two projects.
Additionally, the property developer claims to have so far delivered 175 projects with approximately 30 million square feet of property development.
“Besides the Tier II cities in North India, the NCR is a major growth area for us. After the pandemic, housing demand has picked up and we are seeing good sales across our portfolio,” said Pankaj Bajaj, MD at Eldeco Group.
Established in 1985, the Eldeco Group operates in Lucknow through the BSE-listed entity Eldeco Housing & Industries Limited (EHIL) and in the rest of India through the privately held Eldeco Infrastructure & Properties Limited (EIPL).
“This partnership gives us a great opportunity to serve our customers in NCR markets. We believe now is the perfect time to buy a home or leverage real estate assets using our attractive financing solutions which are tailor-made for the specific needs of our clients,” said Anil Kaul, MD at Tata Capital. Housing Finance Ltd.
Both projects are said to have an estimated revenue potential of Rs 1,650 crore which is targeted over the next 4 years. The injected capital would also provide an exit for existing Eldeco investors.
In August, Eldeco Infrastructure and Properties Ltd also partnered with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) — a fund managed by HDFC Capital Advisors Ltd — for a platform focused on developing low-rise, plotted development projects in Tier II cities of the National Capital Region (NCR).