NEW DELHI: Real estate developer Prateek Group has raised Rs 100 crore from investment firm Xander group's NBFC arm Xander Finance for a township project it is building in Ghaziabad.
The 40-acre township, called Prateek Grand City, is located in the Siddharth Vihar area of Ghaziabad adjoining NH-24 where the builder has planned 7,000 apartments, of which 3,000 have already been launched. Prashant Tiwari, chairman of Prateek Group, said the company will use the money raised from the structured debt deal to pay for the land and construction.
In Ghaziabad, payment for land bought from Ghaziabad Development Authority can be made over five years.
"We invested in the project because we saw consistent sales happening in the project on a month-on-month basis even in the current slow environment," said Amar Merani, chief executive officer at Xander Finance. "This money will help the builder speed up construction and deliver on time."
In 2013, Xander had invested Rs 80 crore in Prateek Group's Edifice project in Noida. The group recently raised Rs 135 crore from Indiabulls Housing Finance for an under construction project, Prateek Wisteria, in Sector 77 of Noida.
Home sales have been slow in many parts of the country, especially in the NCR over the last 18-24 months but builders which have kept delivery timelines have been able to sell apartments even in the current market. The slow sales have led to a cash crunch, necessitating fund raising.
Recently, Saya Group raisedRs 200 crore from Edelweiss. Earlier, Supertech had raisedRs 100 crore from Indiabulls Real Estate Fund to speed up construction of its projects.