Bengaluru-based Mahaveer Group Raises 120 cr from Xander Fin
New Delhi: Bengaluru-based real estate firm Mahaveer Group has raised .₹ 120 crore from non-banking finance firm Xander Finance in a structured debt transaction. The company intends to use the funds to refinance a loan from PNB Housing Finance and to complete a 122-acre plotted development in south Bengaluru’s Jigani area near Electronic City. Praveen Kumbala, managing director of Mahaveer group, confirmed the structured debt transaction. “Apartment sales in Bengaluru have seen a 15-20% slowdown but plots are still selling well,” Kumbala said. NBFC money, he said, is more flexible and the structure is such that it is more comfortable for developers.
The deal offers an internal rate of return (IRR) between 18% and 19%. Amar Merani, CEO at Xander Finance, said this money has been given to Mahaveer group for five years. “Plotted developments are the safest among real estate projects in the current slow market. This company has been able to sell plots at a healthy rate, which gives us confidence,” he said.
CEO at Xander Finance