Adarsh Developers repay Rs 7.5 billion debt to Edelweiss
Real Estate

Adarsh Developers repay Rs 7.5 billion debt to Edelweiss

Bengaluru-based real estate firm Adarsh Developers has achieved a significant financial milestone by repaying a Rs 7.5 billion structured finance facility raised from Edelweiss Alternative Asset Advisors in 2022. The repayment, made possible through operational cash flow and lower-cost refinancing from banks, has reduced the company's cost of funds by 8-9 percentage points. The original financing from Edelweiss, secured at over 20%, was used to revive Adarsh?s residential projects and improve liquidity.

Edelweiss had extended the loan in two tranches, with an initial Rs 4.5 billion disbursed. Adarsh Developers repaid this amount earlier this year using part of the Rs 19 billion it generated from a land sale to Mapletree Investments. The remaining debt was financed through continued cash flow.

?When Edelweiss first lent in 2022, Adarsh was facing significant cash flow challenges,? said a source familiar with the situation. The repayment generated a high return for Edelweiss, with investors in its private credit fund seeing yields of 20-25%.

Adarsh Developers had raised the funds for three major projects in Bengaluru?Adarsh Savarna, Adarsh Wellin Park, and Adarsh Lakefront?totalling 2.5 million square feet and 900 plots. These projects are under construction and are expected to be completed by 2028.

In a refinancing move, Adarsh borrowed Rs 3.85 billion from two banks at 12-13%, finalising the deal. This move helped further reduce its financial burden.

"The company has commenced various projects, boosting cash flow and improving our financial position," said BM Jayeshankar, Chairman and Managing Director, Adarsh Group. "We are now in a favorable financial position and plan to focus primarily on residential development with some commercial projects."

Earlier this year, Adarsh also sold 41 acres of land in Bengaluru to Singapore-based Mapletree Investments for over Rs 19 billion as part of its debt reduction strategy, allowing the company to repay Rs 12.7 billion of debt in the last two years.

(ET)

Bengaluru-based real estate firm Adarsh Developers has achieved a significant financial milestone by repaying a Rs 7.5 billion structured finance facility raised from Edelweiss Alternative Asset Advisors in 2022. The repayment, made possible through operational cash flow and lower-cost refinancing from banks, has reduced the company's cost of funds by 8-9 percentage points. The original financing from Edelweiss, secured at over 20%, was used to revive Adarsh?s residential projects and improve liquidity. Edelweiss had extended the loan in two tranches, with an initial Rs 4.5 billion disbursed. Adarsh Developers repaid this amount earlier this year using part of the Rs 19 billion it generated from a land sale to Mapletree Investments. The remaining debt was financed through continued cash flow. ?When Edelweiss first lent in 2022, Adarsh was facing significant cash flow challenges,? said a source familiar with the situation. The repayment generated a high return for Edelweiss, with investors in its private credit fund seeing yields of 20-25%. Adarsh Developers had raised the funds for three major projects in Bengaluru?Adarsh Savarna, Adarsh Wellin Park, and Adarsh Lakefront?totalling 2.5 million square feet and 900 plots. These projects are under construction and are expected to be completed by 2028. In a refinancing move, Adarsh borrowed Rs 3.85 billion from two banks at 12-13%, finalising the deal. This move helped further reduce its financial burden. The company has commenced various projects, boosting cash flow and improving our financial position, said BM Jayeshankar, Chairman and Managing Director, Adarsh Group. We are now in a favorable financial position and plan to focus primarily on residential development with some commercial projects. Earlier this year, Adarsh also sold 41 acres of land in Bengaluru to Singapore-based Mapletree Investments for over Rs 19 billion as part of its debt reduction strategy, allowing the company to repay Rs 12.7 billion of debt in the last two years. (ET)

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