New Delhi, July 29 -- New Delhi-based real estate developer Omaxe Ltd has secured Rs 500 crore ($57.5 million) in funding from alternative investment firm Oaktree Capital Management through non-convertible debentures.
Omaxe will use the capital to accelerate project delivery across its portfolio of residential, commercial, and public-private partnership (PPP) projects in North India, it said in a statement.
"This fund infusion enables us to move faster on construction, reduce market dependence, and strategically invest in new opportunities that align with our core markets. We believe this partnership will enable us to enhance our geographical presence in many more growth cities, multiplying value for both parties," Mohit Goel, managing director of Omaxe, said.
Finance director Atul Banshal said the company has strengthened its balance sheet over the past few years and improved its financial stability by repaying large debt and maintaining strong sales growth. The company has repaid Rs 1,285 crore in net principal payments to lenders in the last two financial years, reducing its debt to Rs 300 crore, it said. "With no immediate liability to repay, most of the funds would be used for faster execution and to create additional headroom to explore expansion in select markets," he said.
Founded by Rohtas Goel, Omaxe entered the real estate sector in 2001 and went public in 2007. Currently, it is present in 31 cities across eight states, with a diversified portfolio spanning hi-tech townships, integrated townships, group housing, shopping malls, office spaces, and a hotel.
So far, it has delivered around 140 million square feet of real estate. Notable projects include Omaxe New Chandigarh Township, World Street in Faridabad, Omaxe Chowk in Delhi's Chandni Chowk, and Royal Residency in Ludhiana. In the last fiscal year ended March, the company recorded property sales worth Rs 3,000 crore.
In 2022, Omaxe had secured Rs 440 crore in debt financing from Varde Partners to accelerate construction and delivery of projects in New Chandigarh, Lucknow, Ludhiana, Indore, and Faridabad.
Oaktree Capital, a global alternatives investor managing around $203 billion in assets as of March, set up its second India office in Hyderabad's HITEC City earlier this year. It operates as a separate entity within Brookfield Asset Management, which picked up a majority stake in Oaktree in 2019.
Published by HT Digital Content Services with permission from VC Circle.