Realty firm Puranik may raise $33m from IndoStar Capital
Puranik Builders Pvt. Ltd, a Mumbai-based residential real estate developer, is in talks to raise Rs225 crore from Everstone Capital backed non-banking financial services company (NBFC) IndoStar Capital Finance Ltd, two people aware of the development said.
Talks between the two parties are at an advanced stage and the transaction is expected to close soon, said one of the two people cited above, requesting anonymity as the talks are private. Puranik plans to use the money for its two residential projects in Thane, he added.
“Puranik is raising these funds for its Rumah Bali and GB One projects in Thane. They have already tied up a significant portion of the funding and the rest of it is expected to be closed in the coming weeks,” said the second person cited above.
IndoStar Capital, launched in 2011, is promoted by investors including Everstone Capital and Goldman Sachs. The lender offers customized financial services to meet specific customer requirements in the form of structured term finance to corporates and loan against property to borrowers in the small and medium enterprises (SME) sector.
Rumah Bali is a 10-acre residential project themed on the lines of the Bali island of Indonesia, where seven buildings will come up in two phases. The project was launched in 2012. GB One is a 17-storey residential-cum-commercial tower.
Both projects are expected to be completed by 2019, said the second person cited above.
Several emails sent to Puranik Builders were not answered. “We don’t want to comment on market rumours,” said an IndoStar Capital spokesperson in an emailed response.
In May, Puranik had raised Rs300 crore from private equity investor KKR’s real estate NBFC. That money was raised for the ongoing development of Aldea Espanola and Abitante projects in Pune’s Baner and Bavdhan suburbs. The company has completed and delivered three phases of construction in Aldea Espanola and expects to complete the remaining 3.5 million sq. ft of construction for both projects, worth Rs2,500 crore, in next 5-6 years, the company had said while announcing the fundraise.