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Edelweiss’ NBFC arm invests $30 mn in Hyderabad developer

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ECL Finance Ltd, the non-banking financing arm of Edelweiss Financial Services Ltd, has invested Rs 200 crore (roughly $30 million) in a luxury residential project being constructed by a Hyderabad-based developer, two people familiar with the matter told VCCircle.

Edelweiss is one of the biggest players in the debt investment market of the real estate sector, and the deal comes after it invested in two north India-based developer and a Mumbai firm over the past year and a half.

The latest deal involves ECL investing through non-convertible debentures (NCDs) with a four-year tenor, the people cited above said, asking not to be named. 

The people said that the NBFC has invested in Hyderabad’s Aliens Group and that the developer will use the proceeds to complete luxury residential project Aliens Space Station, which was stopped about five years ago.

An email query to Edelweiss Financial seeking comment did not elicit any response by the time of filing this article.

In a separate press statement on Wednesday, Aliens Group said it had raised Rs 200 crore from an investor it didn’t name. It declined to comment on a VCCircle query on Edelweiss being the investor.

The press statement also said that the project will be completed in two phases wherein all the sold flat owners will be accommodated in the first phase at no extra cost and the remaining flats will be available with the company for sale.

ECL’s deals
The NBFC arm of Edelweiss has struck a number of deals in the real estate sector. In July last year, it invested Rs 200 crore in Saya Homes, a residential project of north India-based developer Saya Group.

In May 2016, VCCircle reported that ECL Finance was in advanced talks to invest Rs 250-300 crore in an ongoing residential project of Mumbai-based developer Aakruti Group. 

A month later, ECL Finance invested in an ongoing residential project of Noida-based developer Shri Group. The investment was for the project Shri Radha Aqua Gardens in Greater Noida.

Meanwhile, Edelweiss Financial initiated plans to raise a domestic real estate investment fund in June as it ramps up its focus on the sector after last year announcing plans to scoop up $1 billion from offshore markets.

Edelweiss is among a host of realty private equity firms that are raising money from the domestic market. Motilal Oswal Real Estate, the property investment arm of Motilal Oswal PE, is raising its third domestic fund with a corpus of Rs 1,000 crore while Essel Finance Advisors is looking to mobilise Rs 300 crore in its second local outing and Indiabulls Asset Management is eyeing Rs 500 crore for its second fund.

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Edelweiss Financial Services Ltd. (formerly known as Edelweiss Capital Ltd.) is engaged in providing financial services. It is also engaged in providing advisory and transnational services. The firm offers private placements of equity, capital raising services in public market, mezzanine and convertible debt, corporate debt syndication, mergers and acquisition, infrastructure and real estate advisory services. Its brokerage services include institutional equities, wealth advisory and investment services, client advisory services and financial products distribution. The company was incorporated in 1995 and is based in Mumbai, Maharashtra.

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