Mumbai: LIC Housing Finance, the housing finance arm of the country’s largest insurer, has invested over Rs 150 crore in a portfolio of realty projects of listed entity Karda Constructions’ group company.
The portfolio of nearly a million sq ft development across residential and commercial projects in Nashik is being executed by Shree Sainath Land &Developers (India).
The deal assumes significance as it indicates institutional investors’ rising interest in tier-II property markets. This is also the largest financing transaction ever in Nashik real estate market.
“The investment, by LIC Housing Finance, has been made as a secured debt against the project with total tenure of five years and will be utilised for construction finance,” said one of the persons mentioned above.
With this transaction, existing investor Tata Capital Housing Finance will exit the project Eastext Township, while the rest of the funds will be used for the construction.
Tata Capital Housing Finance had invested around Rs 50 crore in these projects in 2016 and had already secured partial exit from promoters and will exit completely with this transaction.
“We have recently started the construction and expect to deliver the entire project over the next five years. Out of total development, we have already sold 30 per cent of commercial space and 50 per cent of one of the residential towers launched,” said Shekhar Mahadik, senior finance manager, Karda Constructions, while confirming the transaction.
Elysium Capital Advisory, a Mumbai-based boutique real estate investment bank, acted as the sole advisor for the transaction.