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realty developer m3m It has secured a line of credit of Rs 1,500 crore (about $200 million) from alternative investment firm PAG Credit & Markets, two people aware of the development said.
“As per the deal, the money will come in four tranches of Rs 600 crore, Rs 300 crore, Rs 250 crore and Rs 350 crore and will be paid back within 18 months,” said a source. “The company is also eyeing more acquisitions, so the funds will be used for expansion as well.”
PAG and M3M declined to comment.
M3M recently closed two land transactions – in Noida and Panipat – with a combined acquisition value of over Rs 2,200 crore. Both the projects are expected to be commissioned within a month.
The developer is looking to close two more land deals, which will cost the total Rs 1,300-1,400 crore. With this, M3M aims to create a 10 million sq ft portfolio with a topline of $2 billion or around Rs 16,000 crore in a year.
M3M recently acquired 350 acres of land in Panipat for Rs 1,500 crore. The company will invest around Rs 1,200 crore in the project – Rs 500 crore as development cost and Rs 600-700 crore for permissions – and will develop plots and floors apart from common facilities.
The company is expected to close FY23 with sales of Rs 10,000 crore.
“The NCR has witnessed rapid growth and development in recent years and has become a major hub for real estate projects,” said Gaurav Kumar, Managing Director, Capital Markets and Residential Business. CBRE India, “The pace of infrastructure improvements has also unlocked the potential of the surrounding areas. As a result, the region has registered a significant increase in capital values, helping investors witness healthy returns and thus providing investors Attracts attention.
According to CBRE India, investment in real estate is set to touch a record $7.8 billion in 2022, testifying to the strong fundamentals of the Indian real estate sector. It said Delhi-NCR attracted around 30% of the inflows to major Indian cities.
Amit Goenka, managing director, said, “Both global and domestic investors have come back to fund real estate developers and projects. While foreign funds are focusing on greenfield projects, domestic funds are coming in to revive stalled projects. are trying to.” Nisus Finance, “We are also in talks to revive some of the stalled projects with last-mile funding and also funding for construction of projects that are nearing completion.”
PAG is an APAC-focused investment firm that manages funds across multiple asset classes including private equity, private debt and real estate on behalf of some of the world’s leading institutional investors.
PAG is one of the largest private investment firms in Asia Pacific with over $50 billion in assets under management.
According to sources, it is appraising and financing a number of real estate projects in India, which are promoted by top tier real estate developers.
M3M has 42 projects in Gurgaon with a total retail space of around 6 million sq ft and a gross space of around 28 million sq ft.
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