Peninsula Land aims to repay debt in 27-30 months
The Ashok Piramal Group’s real estate development company Peninsula Land is looking to repay its entire debt over the next 27-30 months led by the completion of its 6 ongoing residential projects in Mumbai, Bangalore and Pune, said a top company official.
“Our focus is on completion of the ongoing projects and once completed by March 2022 that itself will take care of our debt obligations. Most of these loans are project specific,” Rajeev Piramal, MD, Peninsula Land, told ET. “In December itself, we have already repaid debt obligations worth Rs 265 crore.”
On a consolidated basis, the company’s debt level was at Rs 2,310 crore as on July 2019 including project-level debt. Currently, the company’s total debt including short-term and long-term facilities stand at Rs 1,630.65 crore. Of this, State Bank of India’s secured term loan principal is Rs 177.72 crore with total tenure of 143 months at interest rates of 9.95% per annum.
On Wednesday, Peninsula Land announced that it has defaulted on its loan obligations of Rs 2.35 crore to the State Bank of India including principal of Rs 88 lakh and Rs 1.47 crore interests accrued thereon. However, according to the company, the delay in payment, which has been paid now, was on account of delays in the rent payment by its tenants the Income-Tax Department and GST Department.
The company is known for developing India’s first mall Crossroads in South Mumbai and converting first mill land into a commercial complex Peninsula Corporate Park in Central Mumbai’s now business district Lower Parel.