L&T Finance Offers Rs 300 crore loan to Satellite’s realty projects

MUMBAI: Non-banking finance company L&T Finance Holdings has extended a loan of Rs 300 crore towards three projects of realty developer Satellite Group. The funding for nearly a million sq ft of development potential has been made at around 15% with a total tenure of up to 7 years, said two persons familiar with the development.

The funds will be used for construction of the developer's 5-lakh-sq-ft low-cost housing project in Mumbai's western suburb Malad, a mid-income group project in Goregaon suburb, and a premium project in South Mumbai.

Of these, the Malad project is a low-cost housing project and the company has already received approvals for the same. This is a slum rehabilitation project and around 80% of the land parcel has already been vacated.

ET's email query to L&T Finance Holdings remained unanswered till the time of going to press. Satellite Group and transaction advisor Cushman & Wakefield declined to comment on the same.

The second project in Mumbai's Goregaon suburb is also a slum rehabilitation project and has the potential to develop around 2 lakh sq ft of saleable space under a midincome segment.

The work at this project is expected to commence over the next few months. The third project in this portfolio is spread over over half an acre land parcel at Mumbai Central in South Mumbai and the construction work is expected to start over the next two quarters.

Recently, L&T Finance Holdings, a Larsen & Toubro subsidiary, invested around .Rs 150 crore in Pune-based Saarthi Group's two residential projects. The non-banking financial company (NBFC) recently also extended of .Rs 350 crore funding to realty developer Supertech's housing project in Greater Noida.