Real Estate

Century Real Estate raises ₹520 crore

Sangeetha Chengappa Bengaluru | Updated on January 17, 2018

P Ravindra Pai, MD, Century Real Estate Holding Pvt Ltd

Its third transaction with Piramal Capital

Century Real Estate has raised a fresh round of funding of ₹520 crore from Piramal Capital, the financial services arm of the Piramal Group.

The funding, which was raised in the first (April-June) quarter of FY 2016-17, will be utilised for its ongoing and upcoming commercial and residential developments, revealed a source on condition of anonymity.

While ₹250 crore will be used as working capital for construction of ongoing projects in Bengaluru, the remaining ₹270 crore will be utilised over the next 12 months for Century Real Estate’s upcoming commercial and residential developments totalling up to 8.5 million square feet of built-up area within 42 acres on Bellary Road and 50 acres on Old Madras Road, said the same source.

This is the third transaction of the Bengaluru-headquartered company with Piramal Capital. The company had raised ₹100 crore from Piramal Capital three years ago, and ₹720 crore last October. After paying off significant chunks of the money raised, Century’s exposure has crossed ₹700 crore with Piramal Capital so far.

Debt liability

On being asked to confirm the fresh funding raised and the company’s total debt liability, P Ravindra Pai, Managing Director, Century Real Estate Holdings Pvt Ltd, declined to comment on the funding; and said Century’s total debt liability at present is ₹650 crore.

In the first quarter of calendar year 2015, Century had borrowed ₹165 crore by issuing non-convertible debentures from ECL Finance Ltd, a subsidiary of Edelweiss Financial Services Ltd, which has since been redeemed, and most of it repaid as well.

“We have delivered 12 projects with 2,500 apartments comprising a total of 2 million sq ft of built-up area and we have 14 projects under development which is a mix of apartments and plotted developments.

“As part of our land monetisation strategy, 50 per cent of our projects fall under plotted developments, which have a quick turnaround time of 9-12 months; while apartments typically take 3-4 years to monetise,” said Ravindra Pai.

Stating that the real-estate market in the country is going through a consolidation phase with many small developers either selling out or going bust, he said: “Homes in the price bracket of ₹50 lakh-₹1 crore are most in demand and that is what we focus on; therefore we don’t see any dip in demand for our product.”

Published on July 11, 2016

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like