Tata Housing Development Company, after raising around R70 Cr by minority stake sale in one of its luxury project to American firm Portman Holdings, has raised R300 Cr by issuance of NCDs to IDFC.
The NCDs are divided in two parts with maturity of three and five years and are planned to be deployed in the coming 3-4 months.
In the last quarter, the company also augmented its capital by a commercial paper issuance worth R150 Cr which is to be used for working capital requirements.
The company recently sold entire second phase of Primanti, the luxury housing project in Sector 72 in Gurgaon, within two days of the launch. The project comprised 150 units spread across 4,50,000 sq.ft and valued at R350 Cr.
IDFC Real Estate Investments was planning to raise a $500 Mn real estate fund to invest in leasedout commercial assets earlier in June this year.
However, another group company in similar line of business, Tata Realty and Infrastructure Ltd. was planning to replace the debt in a Chennai project by switching to lower cost borrowing by issuing NCDs worth R1400 Cr. Both the group companies have been facing a conflict of interests on the basis of business operations and parent firm Tata Sons was in the process to combine them in a JV to develop projects.
Tata Housing also recently disclosed that it would not be pulling out of Maldives and is in talks with the government there regarding an alternate site for a housing project following plans to construct the Supreme Court on one of the allotted sites.
Besides Maldives, the company is investing $60 Mn to develop properties in Sri Lanka.
Earlier this year, Tata Housing had bid to buy certain American consulate properties which include the Lincoln House, Breach Candy and also other properties like the Altamount Road residential building and Washington House.
Tata Sons holds 99.86% of the company and it currently has around 25 projects under various stages of planning and execution across 10 cities in the country.
Some of its current projects include the New Haven in Bangalore, Eden Court – Primo in Kolkata, Shubh Griha in Ahmedabad and La Montana in Pune among others.
In recent months, Bangalore-based developers Golden Gate Properties Ltd. and Century Real Estate Holdings Pvt. Ltd raised R200 Cr and R100 Cr, respectively, from JM Financial Ltd.
In June this year Reliance Capital infused R45 Cr debt finance into Kumar Urban Development by subscribing to NCDs.
Besides being a preferable method of foreign investment in real estate projects, fund raise through NCD issuance also gives decent yields in the range of 14-16%.
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