Adarsh Developers, a real estate firm, sold a 41-acre land parcel in Bengaluru to Singapore’s private equity fund Mapletree Investments. The deal, valued at over Rs 1,900 crore, is part of Adarsh Developers’ strategy to reduce debt. The land has around 7 million square feet of development potential.
“It is a greenfield development, and the money will be used to reduce debt. Adarsh Developers has been consistently reducing debt and focusing on growth,” said two persons aware of the development.
Adarsh Developers, Mapletree, and Savills, the deal’s advisor, declined to comment. Adarsh sold the land to raise cash from private equity funds as it enters its next growth phase. Over the past two years, the firm has successfully refinanced over Rs 3,000 crore in debt.
“The builder is looking to reduce the net debt by another Rs 1,000 crore, and this is the last land monetisation undertaken by Adarsh,” said one of the persons quoted above. The firm’s net debt stood at Rs 3,300 crore as of March 2024.
Additionally, Adarsh Developers sold two land parcels in Bengaluru to Godrej Properties for about Rs 180 crore in 2022. The company focuses on luxury homes priced above Rs 1.4 crore in Bengaluru, with 20% of its portfolio dedicated to mid-income projects.
In 2023, HDFC Capital Advisors, a subsidiary of HDFC, India’s largest private mortgage lender, invested over Rs 1,600 crore in a portfolio of 12-13 residential projects by Adarsh Developers. These projects, located exclusively in Bengaluru, cover a total area of 10 million square feet and include both ongoing and approved developments. Adarsh Developers also secured capital from Oaktree and Edelweiss to refinance old debt and support growth.
“The capital infusion has multiple objectives, such as fostering expansion, guaranteeing operational funds, and expediting the conclusion of current projects,” said a source.
The company plans to allocate around Rs 7,000 crore over the next seven years to develop 25 million square feet of residential properties in Bengaluru. This investment includes ongoing apartment projects covering 17.10 million square feet, plotted developments spanning 2.80 million square feet, and villa developments totaling 4.62 million square feet.
