New Delhi: Oaktree Capital Management, a US based alternative investment firm has invested Rs 570 crore in M3M, a real estate company that’s developing multiple projects in the national capital region (NCR), including the Trump Tower in Gurugram.
The funding would be Oaktree's first investment in NCR's real estate space.
“The investment will be in the form of non convertible debentures. While the first tranche of Rs 370 crore has already been received earlier this week, the remaining funds will be claimed as working capital. It is a debt facility which will be used for under construction projects,” said a person familiar with the matter.
Both M3M and Oaktree did not respond to ET's email query till press time.
The money will be utilised by the real estate company for completion and expansion of its various projects, said people involved in the deal.
Currently, M3M has over 2,200 acres of land bank in the high-growth corridors of NCR.
In all, the company has about 2.5 crore sq. ft. of projects under development with a construction outlay of Rs 4,500 crore.
Last week, M3M Group, which previously raised funding from Indiabulls and PNB Housing Finance limited, delivered two of its projects with a total sales value of Rs 900 crore.
These projects are part of the sprawling 17-acre master development also included business park for large corporate houses and office spaces for high-end brands.
According to a JLL India report, institutional investment into Indian real estate sector has declined 58% from a year ago to $712 million during the quarter ended March. The total investments in the financial year 2019-20 witnessed a decrease of 13% at $4.26 billion--the lowest for four years.
A liquidity crunch, negligible customer footfalls and low sales conversion for nearly two months during the lockdown has put immense pressure on most realty developers to raise funds to complete projects or restart stalled projects.