Century Real Estate, a prominent Bangalore based real estate company, is preparing to raise ₹400 crore in order to refinance its current debts. The corporation possesses a significant land bank of 3,000 acres throughout the city. Here's a detailed look at the funding plans and market context:
Funding Strategy
The real estate giant is reportedly engaged in discussions with numerous Non-Banking Financial Companies (NBFCs) and private equity funds to secure the necessary capital. The funding is anticipated to be finalized before the end of the following month. Established in 1973, the real estate company has shifted its attention to larger developments. It has scheduled projects encompassing over 10 million square feet. The company's land holdings are estimated to hold around $2 billion.
Financial Maneuvering
While the management has refrained from commenting on the fund raising efforts, it has been reported that some portion of the funds was secured through Non-Convertible Debentures (NCDs). In its fund raising efforts, the company has previously collaborated with Reliance Capital, Kotak Realty Fund, and JM Financial. Earlier in the year, global private equity firms like Goldman Sachs and Fortress were among the investors. The real estate firm has since provided an exit to these private equity funds through buybacks and restructuring.
Market Dynamics
According to sources familiar with the industry, Century Real Estate possesses term documents for approximately ₹600 crore for the refinancing initiative. The real estate firm is expected to finalize around ₹350 crore in the near future. Despite challenges in the residential sector, the real estate market in Bangalore, a prominent IT hub, has witnessed rapid expansion. This growth underscores the enduring demand and potential within Bangalore's real estate landscape.