India Infoline Finance invests Rs260 crore in three Mumbai projects

India Infoline Finance Ltd, the non-banking finance company (NBFC) of financial services firm IIFL Holdings Ltd, has closed three back-to-back real estate investments in projects in Mumbai, said people familiar with the development.

India Infoline Finance has put in around Rs.260 crore across these three deals primarily in the form of loans to developers, who will use the money for project development, to buy construction rights for projects and for acquiring land. “These are some of the larger transactions that have been recently closed from the NBFC portfolio apart from a few other smaller deals,” said a person familiar with the development, but didn’t want to be named. India Infoline Finance generally lends to real estate firms, which have good locations, generate good cash flows and have approvals in place. “With a number of debt funds in the markets, NBFCs have become more aggressive and competitive,” said the person mentioned above. 

The demand for capital in the real estate sector remains high, particularly in Mumbai where land and cost of construction are more expensive and sales in recent months have been relatively tepid. In the first transaction, India Infoline has given Rs.100 crore to a suburban residential Mumbai project being developed by Midwest Infrastructure. 

Rajan Dhruv, partner, Midwest Infrastructure, said that it will use the money to buy extra floor space index (FSI) or building rights from government agency Maharashtra Housing and Area Development Authority (Mhada). The project in Andheri West, which will have two 38-storey towers, is a Mhada housing redevelopment project. Read More...

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