Omaxe on Tuesday said it has raised Rs 440 crore from Varde Partners to expedite construction of its existing projects as well as expand business. Omaxe Group is developing integrated townships in New Chandigarh, Lucknow, Ludhiana, Indore and Faridabad. It is also developing a multilevel parking cum commercial project in PPP model with North Delhi Municipal Corporation in Chandni Chowk, Delhi.
The company will deploy the funds for expediting construction and delivery of its projects as well as for expansion, according to a regulatory filing.
Atul Banshal, Director Finance, Omaxe Ltd, said: “We will double down on investments in the cities driving our growth to develop new-age and world-class residential, commercial and retail destinations. We are not doing just this one transaction with Varde but looking to create a long term partnership across projects.”
In the last two financial years, Omaxe has repaid Rs 550 crore to lenders as principal payment and reduced its debt from Rs 1,400 crore to Rs 850 crores, he added.
Omaxe has sold properties worth Rs 1,155 crores in the first nine months of FY 2021-22.
“We welcome the opportunity to establish this partnership with Omaxe, and help support the development and growth of the company’s extensive real estate portfolio,” said Tim Mooney, Partner and Global Head of Real Estate at Varde Partners.
“This deal reflects our continued belief in what we see as a significant, scalable opportunity set across the Indian real estate market and our ongoing commitment to investing in India,” he said.
Omaxe has delivered 127.89 million square feet area in real estate and construction contracting.
The company has presence in 27 cities across 8 states/UT namely Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Uttarakhand, Rajasthan, Delhi, Himachal Pradesh and possesses a diversified product portfolio that includes Hi-tech townships, integrated townships, group housing, shopping malls, office spaces, SCOs and hotel.
It is currently undertaking 21 real estate projects – 3 Group Housing, 12 Townships, 6 Commercial projects.