Ajmera Realty & Infra India Ltd has successfully secured credit facilities of Rs 500 crore from Standard Chartered Bank and ICICI Bank, the real estate firm said on March 6.
The funds will be used for the execution of Ajmera Manhattan, a residential project in Mumbai's Wadala area. A sum of Rs 200 crore will be used for the partial prepayment of the GCP loan availed from HDFC Bank, the company said in a statement.
“Ajmera Manhattan’s exceptional performance has enabled us to secure this deal at more favorable commercial terms. The successful execution of this deal highlights our company's financial reliability, reinforcing our commitment to achieving our 5x growth vision," said Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd.
The company said it secured the deal at a lower cost compared to the prevailing rates and through the structured deal, it advanced the payment of the GCP loan.
The company said in May 2023 that planned to cut down its corporate debt by 90 percent in three years. It expected revenue from internal accruals to bring down its corporate debt of around Rs 525 crore.
Also read: Plans to bring debt down by 90% in 3 years, open to explore stressed projects: Dhaval Ajmera
"Our total debt is around Rs 778 crore. We have repaid around Rs 54 crore last fiscal, and we are focusing on bringing our corporate-level debt down first. Our debt has two parts –corporate level debt and project-specific ones," Ajmera had told Moneycontrol in May.
Out of the total debt, corporate debt was around Rs 525 crore. The rest was project-specific debt, he said. "From Rs 525 crore, we want to cut down around 90 percent of the total corporate debt in the next three years," Ajmera said.
The company the Ajmera Manhattan project had seen robust booking, with over 60 percent of the inventory sold as of December.
The demand for the project remained strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Shri Atal Bihari Vajpayee Trans Harbour Link , better known as Mumbai Trans-Harbour Link, the company said.
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