Century Real Estate Holdings Pvt Ltd has secured a substantial debt financing of ₹450 crore from Edelweiss Alternative Asset Advisors Limited, the asset management arm of financial services firm Edelweiss Group, according to a top company executive. The Bengaluru-based developer plans to utilize around 40% of the funds to acquire a 72-acre land parcel for a plotted residential project near the international airport at Devanahalli in north Bengaluru. The remaining funds will be used to repay existing debt and as working capital for new and existing projects. Century Real Estate, known as one of the largest landowners in Bengaluru, has primarily focused its investments in the northern part of the city where it holds a significant land bank.
Managing director of Century Real Estate, Ravindra Pai, mentioned in an interview that Bengaluru’s residential market has shown strength post-covid, with the company achieving a sales milestone of ₹1,000 crore in FY24. The aim now is to double sales to ₹2,000 crore in FY25, with a substantial pipeline of inventory including residential and plotted projects.
The transaction details were not disclosed by an Edelweiss spokesperson. Property consultants have noted an increase in debt transactions in housing projects due to the sales momentum in the residential sector and the subsequent need for working capital. Several private equity and real estate credit funds such as Nisus Finance, PAG Asia, ASK Property Fund, HDFC Capital, among others, have been active in the residential space.
Prestige Group recently announced investments from Abu Dhabi Investment Authority (ADIA) and Kotak AIF in its residential projects, while Nisus Finance and BCD Group invested in a subsidiary of Shapoorji Pallonji Real Estate. Domestic investors are also showing increased interest in real estate, with a significant 45% share in investments during January-March 2024, particularly in office and residential assets. Piyush Gupta, managing director of capital markets & investment services at property advisory Colliers India, highlighted the growing confidence of a diverse range of investors across various investment strategies, including credit and acquisitions.
Century Real Estate has successfully completed approximately 20 residential and plotted development projects, with three residential and two plotted projects currently under construction.
