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L&T Finance looking for buyers for distressed real estate portfolio, including loans given to Pune-based Xrbia Groupsaid two people aware of the development.
The company has invited proposals for a loan book of ₹880 crore to five Xrbia group companies, the people said.
While inviting Expressions of Interest (EoIs) from asset reconstruction companies, L&T has not set a reserve price for the portfolio. It received half a dozen EOIs from ARCs, said one of the persons quoted above.
These five accounts include Xrbia Developers, which has a debt of ₹435 crore, Xrbia Chakan Developers with ₹164 cr, Xrbia Warai Developers with ₹156 cr, Exorbia Ambience Realty LLP ₹107 crore and Eiffel Lifespace with ₹18 crore debt.
L&T Finance has invited offers under a 15:85 structure, comprising 15% in the form of cash and the remaining 85% in the form of Security Receipts (SRs), payable on recovery of the loan from the borrower.
L&T Finance did not respond to ET’s request for comment.
Xrbia Group commenced real estate operations in 1995 and has so far executed projects with over 14 million square feet (MSF) of salable area, said a report. ICRA Ratings Dated the 21st September, 2022. Iqra It also said that more than 20 MSFs are in various stages of development spread across affordable housing, plotting schemes and mid-luxury residences.
ICRA last issued a rating on Xrbia Developers in May 2019, where it revised the outlook for the ₹ 350 crore loan amount from positive to stable and assigned a BBB+ rating. In the same report, the firm moved the account to ‘Issuer not cooperating’.
In its quarterly results, L&T Finance does not disclose its gross or net non-performing assets to investors. Its gross stage three (GS3) loans stood at ₹3,723 crore, or 4.21% of total loans as of December 31, 2022, according to the company’s presentation to analysts. GS3 stood at ₹5,623 crore during the quarter ended December 2021, said the same presentation.
GS3 includes loans overdue for more than 90 days and other stressed assets.
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