PE funds are the choicest instruments for raising money for VGN Developers Pvt. Ltd
Real estate firm VGN Developers Pvt. Ltd is looking to raise Rs.400 crore from private equity funds to refinance debts. Two bankers familiar with the development mentioned that they are in talks with large private equity funds to raise the capital. The re-financing option is good for them as the money will be used to retire debt that they had raised last year.
Pratish Devadoss the managing director of Chennai-based VGN Developers was reluctant to comment on the developments. Last June, the developer had raised Rs.300 crore from Asia-focused private equity fund Clearwater Capital Partners LLC and the non-banking financial company (NBFC) of Piramal Enterprises Ltd.
VGN had raised the capital to part-finance the acquisition of a 10-acre plot in Chennai’s Guindy area for nearly Rs. 305 crore. This is one of the largest land deals in the city. The plot was auctioned by State Bank of India (SBI) which was a non-performing asset lying in its books.
VGN is developing 16 million square feet of residential projects in the southern region. Hence even though the budget housing schemes of the government might not have taken off, the regular housing sector has shown the uptick.
The joint financing was done through a high-yield debt, non-convertible debentures (NCD) which has become a popular way of financing for developers in the last few years.
Source- Mint
Chennai-based VGN Developers, Clearwater Capital Partners, NBFC, Non banking financial company, Non-Convertible Debentures, Piramal Enterprises Ltd, VGN Developers Pvt. Ltd
