Ajmera Realty & Infra India Ltd on Wednesday announced that it has secured credit facilities totaling Rs 500 crore from two leading financial institutions: Standard Chartered Bank and ICICI Bank. These funds, it said in a regulatory filing, will be utilized for the execution of Ajmera Manhattan, a luxurious residential project situated in Wadala, Mumbai. Additionally, a portion of the funds amounting to Rs 200 crore has been utilized towards the partial prepayment of the GCP loan availed from HDFC Bank.
The Ajmera Manhattan project has experienced healthy booking activity, with over 60 per cent of inventory already sold as of December 2023 and is also endeavored to be certified as a green building. “The demand for the project remains strong, driven by the exponential growth in housing demand along the Sewri-Wadala belt, largely attributed to the recent launch of the Shri Atal Bihari Vajpayee Trans Harbour Link (commonly known as “Mumbai Trans-Harbour Link” & “Atal Setu”),” the company said.
The estimated project completion costs are well-covered by pre-sales balance receivables. Through this structured deal, the company has advanced the partial prepayment of the GCP loan ahead of its schedule. Consequently, the project loan repayment is expected to align more closely with project cash flows. Importantly, the company has secured this deal at a lower cost of funds compared to prevailing rates with the existing lender.
Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd, said, “This structured deal represents a strategic step forward in maintaining our unwavering dedication to our company’s objectives. Ajmera Manhattan’s exceptional performance has enabled us to secure this deal at more favorable commercial terms. The successful execution of this deal highlights our company’s financial reliability and creditworthiness, reinforcing our commitment to achieving our 5x growth vision.”