Ajmera Realty & Infra India Ltd has secured credit facilities amounting to Rs 500 crore from Standard Chartered Bank and ICICI Bank, as announced on March 6.
The allocated funds are earmarked for the development of Ajmera Manhattan, a residential project situated in Mumbai’s Wadala area. Of the total, Rs 200 crore will be allocated towards the partial prepayment of the GCP loan obtained from HDFC Bank, according to a statement released by the real estate firm.
Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd, expressed gratitude for the favorable terms achieved through the success of Ajmera Manhattan. The transaction underscores the financial reliability of the company, emphasizing its dedication towards realizing a 5x growth vision.
The negotiated deal was secured at a reduced cost compared to prevailing rates, facilitated through a structured arrangement to advance the payment of the GCP loan.
In May 2023, the company announced its intention to significantly reduce corporate debt by 90 percent within three years. This initiative aimed to leverage revenue from internal accruals to diminish corporate debt, estimated at around Rs 525 crore.
Ajmera explained the company’s strategy, focusing on prioritizing the reduction of corporate-level debt, which accounted for Rs 525 crore out of the total debt of Rs 778 crore. The remaining debt pertained to project-specific loans. The company aims to achieve a substantial reduction in corporate debt over the next three years.
As of December, the Ajmera Manhattan project has witnessed robust booking, with over 60 percent of the inventory sold. The sustained demand for the project is attributed to the burgeoning housing demand along the Sewri-Wadala belt, largely propelled by the recent inauguration of the Shri Atal Bihari Vajpayee Trans Harbour Link, also known as the Mumbai Trans-Harbour Link.
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By Ravi Kumar