Leading real estate developer Eldeco Group has raised Rs 275 crore in debt from Tata Capital Housing Finance Ltd (TCHFL), a wholly-owned subsidiary of Tata Capital Ltd. The Eldeco Group plans to deploy the capital raised in mid-income residential projects in Delhi NCR.
The Group so far has delivered 175 projects with approximately 30 million sq ft 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 sq. ft. project in Noida and the second one is a 1.2 million sq ft project in Sohna, Gurugram. Eldeco Group has currently invested Rs 175 crore in both the projects.
Commenting on the fund infusion, Pankaj Bajaj, MD of Eldeco Group said, “We are delighted to partner with TCHFL. Apart from tier 2 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.”
Anil Kaul, Managing Director, Tata Capital Housing Finance Limited, said, “This partnership gives us a great opportunity to serve our customers in the 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 customised mortgage solutions for both retail customers and developers across the country.”
The two projects together have an estimated revenue potential of Rs 1650 crore, which is targeted over the next 4 years. The capital raised will enable the Eldeco Group to fast-track the construction of the two projects and also pave the way for an exit to its existing investors.