New Delhi: Realty firm Parsvnath Developers has raised about Rs200 crore through debentures for giving exit to global investment firm JP Morgan and its affiliates from its housing project in the national capital.
The company now owns 100% stake in the residential project located at Civil Lines in the national capital. This project, comprising 453 units with a built-up area of 20 lakh sq ft, is being developed at a cost of Rs700 crore. In May, Parsvnath Developers had given exits to private equity firms like Red Fort Capital and Proprium Capital from its office building near Connaught Place for Rs500 crore.
“We have given the exit to JP Morgan and their affiliates in the Civil Line project and the SPV developing this project is now 100% owned by the company," Parsvnath Developers chairman Pradeep Jain told PTI.
He said the company has raised about Rs200 crore through listed non-convertible debentures to buy back the investments in this project.
Asked about the current debt, Jain said the company’s debt is around Rs1,300 crore. Parsvnath Developers in May this year raised about Rs500 crore from an NBFC through lease rental discounting (LRD) to provide exits to Red Fort Capital and Proprium Capital.
In the last few years, Parsvnath has given exits to various investment firms in different projects involving Rs700-800 crore.
When asked about delay in completing projects that has resulted in buyers’ complaints, Jain said the company is focussing on completion of ongoing projects and has handed over 4,000 homes and plots in last two-and-a-half years. “We are targeting completion of 500-700 units in every quarter. In next two years, which is December 2018, we should be able to complete all our legacy projects," Jain said, adding that the company is not launching new projects.
Parsvnath is also focusing on accelerating development of commercial projects to encash increased leasing demand. Earlier this month, Parsvnath Developers reported Rs6.21 crore standalone net loss during the second quarter of the current fiscal against a net loss of Rs12.26 crore in the same period of last financial year 2015-16.
Income from operations remained flat at Rs48.9 crore in the July-September quarter of 2016-17, as against Rs48.81 crore in the year-ago period. Parsvnath Developers has completed and delivered 57 projects with a total area of 25.86 million sq ft and is currently working on 45 projects with a total area of 54.13 million sq ft.