Xander Finance Invests .₹ 300 cr in Two Projects
Debt facilities to have a tenure of 4-5 years, disbursement to be made in phases
Mumbai: Xander Finance, the non-banking financial arm of alternative investment firm The Xander Group, has invested nearly .₹ 300 crore in two residential projects in Chennai and the National Capital Region, said a company official. The NBFC has invested over .₹ 120 crore in a plotted development project of realty developer VGN Property Developers in Ambattur locality of western Chennai, while it invested over .₹ 160 crore in Ansal API’s low-rise residential project in sector 67, Gurgaon.
“Both the projects that we have invested in do not have much of construction risk associated with them as one of them is a low-rise and the other one is a plotted development. This has allowed us to enter these projects before the commencement of sales. We are quite confident of cash flows arising from these projects in a shorter span due to limited construction work required to be done,” said Amar Merani, MD, Xander Finance .
The total tenure of these debt facilities are 4-5 years and disbursement to be made in tranches is linked to certain projectrelated milestones. The investment made by Xander Finance in VGN Property’s Chennai project is part of a larger township, VGN Cosmopolis. Group is a global investment firm focused on realty, infrastructure, hospitality and credit in EMs
“In January, we launched the 10-acre first phase of total plotted development spread over 20 acres . We will be launching our second phase by March or April. This is part of a large township VGN Cosmopolis,” said V Pratish Devadoss, MD, VGN Property Developers. Xander Finance has been an active investor in real estate and education for the last few years and has been deploying about .₹ 1,000-1,500 crore in these sectors on an annual basis.
The Xander Group is a global investment firm focused on real estate, infrastructure, hospitality, retail and credit in emerging markets. Since 2005, the firm has committed over $2.3 billion of capital to the Indian market across private, public, credit and venture investments.
In November, in the largest single deal in the retail real estate sector in India, Xander Group’s arm Virtuous Retail formed a $450 million joint venture with Dutch pension fund asset manager APG Asset Management.