MUMBAI: Delhi-based Prateek Realtors has raised ₹325 crore and Bengaluru-based Suruchi Properties ₹450 crore debt from Edelweiss Special Situations Fund at 18-20%, continuing with the trend of big investments by private credit funds into the real estate sector.
“Edelweiss has done two investments in the real estate side from its special situation fund ₹11,000 crore in the last week and is closing on with the next investment in a manufacturing company,” said a source. “They have invested ₹325 crore in Prateek and ₹450 crore in Suruchi Properties. Both the deals have happened at around 18-20% and Edelweiss has financed the completed, constructed and fully ready projects.”
Suruchi Properties is part of Century group, real estate groups based out of Bangalore. The company is engaged in development of residential projects namely Golfview located at Indiranagar, Bangalore with total saleable area of 8,73,238 Sq fts.
The company is rated B stable by Acuite due to nascent stage of the all projects, high dependency on refinance of the debt through issue of NCDs, high dependency on sales and timely collections from customers for source of finance and exposure to the risks in the real estate industry.
Prateek Realtors is developing affordable group housing project Grand City having 40 acres’ land area located in Ghaziabad. The company had earlier defaulted on its NCD payments. The geographical concentration in the revenue profile, past delays in completion of the project and susceptibility of cyclicality in completion of real estate projects are some of the concerns, according to Acuite, which has rated the paper C.
