Delhi-based Prateek Realtors has secured ₹325 crore, while Suruchi Properties, based in Bengaluru, obtained ₹450 crore in debt from Edelweiss Special Situations Fund at interest rates ranging from 18-20%. This follows a pattern of substantial investments by private credit funds in the real estate industry.
“Edelweiss has done two investments in the real estate side from its special situation fund ₹11,000 crore in the last week and is closing on with the next investment in a manufacturing company,” said a source. “They have invested ₹325 crore in Prateek and ₹450 crore in Suruchi Properties. Both the deals have happened at around 18-20% and Edelweiss has financed the completed, constructed and fully ready projects.”
Suruchi Properties, a member of the Century group, is a real estate firm situated in Bangalore. The company specializes in constructing residential projects such as Golfview in Indiranagar, Bangalore, boasting a total saleable area of 8,73,238 square feet.
Acuite has rated Suruchi Properties as B stable due to the early stage of all projects, heavy reliance on refinancing debt through the issuance of NCDs, significant dependence on sales and timely collections from customers for financial sources, and exposure to risks in the real estate sector.
Prateek Realtors is currently developing the affordable group housing project Grand City, spanning 40 acres of land in Ghaziabad. The company has previously defaulted on its NCD payments. Acuite has expressed concerns about the concentration of revenue in specific geographical areas, past project completion delays, and vulnerability to cyclical fluctuations in real estate project completion. Consequently, the paper has been rated as C by Acuite.
