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Omaxe secures Rs 440 crore funding from Värde Partners

The company will deploy the funds for expediting construction and delivery of its projects as well as for expansion

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Real estate developer Omaxe said on April 26 that it has raised Rs 440 crore from Värde Partners, a global alternative investment firm. The company will deploy the funds for expediting the construction and delivery of its projects as well as for expansion, it said.

Omaxe Group is developing integrated townships in New Chandigarh, Lucknow, Ludhiana, Indore, and Faridabad. It is also developing a multilevel parking-cum-commercial project in the PPP model with North Delhi Municipal Corporation in Chandni Chowk, Delhi scheduled for delivery in this fiscal.

The Group has so far delivered approximately 127.89 million sq. ft. (till December 2021) in real estate and construction contracting.

“Over the last three decades, Omaxe has built a reputation among homebuyers, investors, and financial institutions based on strong fundamentals and financial discipline, quality construction, consistent delivery, and a healthy return on investment.

"We will double down on investments in the cities driving our growth to develop new-age and world-class residential, commercial and retail destinations. We are not doing just this one transaction with Värde but looking to create a long-term partnership across projects,” Atul Banshal, Director Finance, Omaxe Ltd.

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In the last two financial years, Omaxe has repaid a net of Rs 550 crore to lenders as principal payment and reduced its debt from Rs. 1400 crore to Rs 850 crore. Omaxe has sold properties worth Rs 1155 crore in the first nine months of FY 2021-22.

“We welcome the opportunity to establish this partnership with Omaxe, and help support the development and growth of the company’s extensive real estate portfolio,” said Tim Mooney, Partner and Global Head of Real Estate at Värde Partners.

“This deal reflects our continued belief in what we see as a significant, scalable opportunity set across the Indian real estate market and our ongoing commitment to investing in India,” he said.

Värde Partners has 28 years of experience investing in real estate and credit markets and originated over $5 billion in commercial real estate loans globally since 2017. The firm opened its Mumbai office in 2018 and has invested more than $2 billion in India.

Omaxe has 127.89 million sq. ft. of delivered space in real estate and construction contracting (as of December 2021).
Moneycontrol News
first published: Apr 26, 2022 04:49 pm
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