Gurgaon based - M3M India raises Rs 1,250 crore from Indiabulls Housing Finance
7th June 2016Category : Real EstatePublished by :Rahul Verma Reading Time : 3 Minute News Sourced : India
Challenging the tides: (L) Pankaj Bansal, Director and (R) Basant Bansal, Chairman, M3M India
Real estate developer M3M India has raised Rs 1,250 crore from Indiabulls Housing Finance. The company used Rs 700 crore of this fund to pay the installment to Sahara group, concluding a deal to acquire 185 acres of land in Gurgaon for Rs 1,211 crore, according to ET.
The company M3M will utilize Rs 550 crore to repay debt and for other corporate usage and buying new land, says report.
The money has been raised by M3M through a structured debt transaction by discounting the cash flows of M3M's high-end Golf Estate project in Gurgaon.
Pankaj Bansal, Director at M3M had said at the time it had agreed to buy the land from Sahara that it plans to build a mixed-use development on the land parcel which will have serviced apartments, hotels, offices, branded residences as well as entertainment centres among other things.
The ongoing slump in market has seen promising backing to utilize it in buy land and other process like covering up the loans, speeding up construction.
According to experts, real estate regulator that will be coming into force, recommends that under construction for which a completion certificate has not yet been issued, have to be registered with the real estate regulator.
The Builders are opting funding first to complete their projects and get completion certificates much before the real estate regulators become operational.
Last year, Ghaziabad-based builder VVIP raised Rs 120 crore from Reliance Capital to speed up construction. Noida-based Supertech raised Rs 100 crore from Indiabulls Real Estate Fund.