Paradigm Realty on Wednesday announced that it has successfully repaid its debt of Rs 175 crore debt to Edelweiss Financial Services, two quarters ahead of schedule. The early repayment, it added, was achieved through robust sales collections and refinancing at an interest rate of under 13 per cent per annum, marking the beginning of the second phase of development for the township.
The debt was initially raised two years ago to fund the residential phase of 102 Downtown, a 10-acre mixed-use township in Oshiwara, Andheri West. The project was developed jointly with Prozone Realty and it encompasses a 4.5 million sqft development potential, including 1.3 million sqft of residential spaces and a shopping center.
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Parthh K Mehta, CMD, Paradigm Realty, said, “The early exit provided to Edelweiss Financial Services is a demonstration of our commitment to financial discipline and operational excellence. Their support played a pivotal role in expediting the delivery of the first phase of 102 Downtown comprising of 600 apartments.”
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Edelweiss Financial Services achieved a cumulative 18-19 per cent Internal Rate of Return (IRR) on the investment, which included quarterly coupon payments starting from the third quarter after the initial funding. The new financing facility is Rs 135 crore sanctioned at an interest rate that can reduce to 12 per cent upon achieving performance milestones. This, it added, will also be utilised by Paradigm Realty for its project expenditures in addition to partially replacing the Edelweiss debt.
Paradigm Realty has also announced plans for further funding closures in the coming months. The group is in advanced discussions to secure Rs 125 crore for its Borivali (West) project at a rate of below 11 per cent per annum, alongside negotiations for raising over Rs 300 crore for three upcoming projects (Carter Road, Pali Hill Road and Prabhadevi) through reputed NBFCs and fund houses.
As part of its growth strategy, Paradigm Realty is expanding its footprint beyond Mumbai’s extended boundaries, with plans to explore opportunities in emerging locations like Karjat.
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