Realty firm Gaurs Ltd has raised Rs 500 crore from Kotak Mahindra group for faster execution of its two projects at Noida Extension, Uttar Pradesh.
Gaurs Group, one of the leading real estate player of the Delhi-NCR, is currently developing number of projects including two large integrated townships at Noida Extension and Yamuna Expressway.
"We have raised Rs 500 crore from Kotak group as debt. The fund will be used to increase the pace of the construction in our two projects," Gaurs group MD Manoj Gaur told PTI.
Kotak Mahindra Bank has invested this amount through its subsidiary, Kotak Mahindra Prime Ltd, he added. The two projects where this fund would be used are Gaur City II, part of 237 acre township Gaur City at Noida Extension and commercial project Gaur City Centre.
Gaurs had in January this year raised Rs 640 crores from PNB Housing for one housing and one retail project. "We have achieved strong sales bookings in the last two financial years despite overall slowdown in the housing market," Gaur said. Healthy sales bookings have helped in servicing the loans taken by the company from banks and NBFCs (non-banking financial companies).
"Kotak is a respected lender in the real estate space. The deal of this magnitude has been possible due to the consistent performance of our company in last several quarters. This deal will cut down our financing cost significantly,” Vineet Singhal, Group chief financial officer of Gaurs group said.
Commenting on the development, a spokesperson of Kotak Mahindra Group said, “We are extending the debt for development of quality residential and commercial projects. We value borrowers with good track record and who are progressively building organisational capabilities to deliver value to all stakeholders on a sustained basis".
Gaurs Group had delivered over 40,000 housing units in last 24 years. The company sold around 10,000 units last fiscal. Gaurs group has also decided to diversify its business by entering into commercial real estate and hospitality projects as well as education sector.
The Gaur City Centre is a part of 25 acre commercial project, comprising that of 8.5 lakh sq ft Gaur City Mall, a multi-level parking for around 4000 cars, a hospital and one hotel.
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