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Ajmera Realty fundraise: Ajmera Realty & Infra raises Rs 500 cr from Standard Chartered Bank, ICICI Bank

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Realty developer Ajmera Realty & Infra India Ltd has raised Rs 500 crores from Standard Chartered Bank and ICICI Bank through a structured deal to support development of a luxury residential project and partial repayment of a loan availed from HDFC Bank.

The listed company had earlier raised Rs 540-crore general corporate purpose (GCP) debt from HDFC Bank in 2019 and 2021 at 12% interest rate and this was scheduled to be repaid in 2025 and 2027. The developer has prepaid around Rs 200 crore of this ahead of scheduled repayment in 2025.

The new funds have been raised at 11% interest rate that has led to a 40-basis-point reduction in the company’s weighted average cost to 11.9%. The company’s debt-equity ratio stands at 0.9x.

“This structured deal is a strategic step forward to achieve our stated objective of five-fold growth in business. Ajmera Manhattan’s exceptional performance has enabled us to secure this deal at more favourable commercial terms,” said Dhaval Ajmera, director, Ajmera Realty & Infra Ltd.

Part of these funds will be used to finance its ongoing luxury housing project Ajmera Manhattan in Wadala. According to the company, the project with 500,000 sq ft carpet area has witnessed robust booking activity and over 63% of its inventory has already been sold as on December end. It is expected to be completed by June 2027.

With financial closure at better terms and the balance cost for project completion being low as compared to the sales receivables, the project loan repayment is now expected to align more closely with project cash flows, he said.According to Ajmera, the demand for its luxury project in Wadala remains strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Shri Atal Bihari Vajpayee Trans Harbour Link, commonly known as Mumbai Trans-Harbour Link (MTHL).The company recorded sales worth Rs 253 crore during the quarter ended December, up 98% from a year ago driven by sustained performance of its key projects, Ajmera Manhattan and Ajmera Eden in Mumbai, as well as projects in Bengaluru. The developer sold 103,573 sq ft space in the December quarter, up 63% from a year ago.

Ajmera Realty & Infra Ltd recently acquired a residential redevelopment project in Mumbai’s Versova locality. This project has a total development potential of over 90,700 sq ft and gross development value of more than Rs 360 crores.

In September, the developer had secured the rights to redevelop four housing societies at Yogi Nagar in Mumbai’s Borivali suburb. The project is likely to generate revenue of Rs 330 crores with an estimated carpet area of over 1.07 lakh sq ft.

The original development of Yogi Nagar is a part of the township project development undertaken by the developer earlier and of this, four societies will now be redeveloped by the company.

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