Published On:March 11 2015
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Xander Advisors India invests Rs. 280 crore in Pune realty project.
Private equity firm Xander Advisors India has invested around Rs. 280 crore in a residential project of realty developer Kumar Urban Development, two people with direct knowledge of the transaction said.
'The deal was closed last week and it will be a structured transaction, which includes private placement of non-convertible debentures (NCDs),' one of these people said.
NCDs are unsecured bonds that cannot be converted into the company's equity or stock and usually carry higher interest rates. This instrument, which offers healthy yields of 14-18%, has emerged as this year's tool-of-choice for real estate firms to raise money amid tight liquidity as banks continue to be selective in extending loans to developers.
The company will use the funds raised for developing a slum rehabilitation project in Pune. The proposed project at Karve Road, a central part of the city, is estimated to have 1 million sq ft of saleable space. The company is working on configurations and pricing of apartments here.