Mumbai-based developerAckruti City has raised Rs 300 crore from Future Capital’s NBFC arm, State Bank of India and ICICI Bank by mortgaging two fully built commercial buildings, Ackruti Star and Ackruti Solaris in Andheri east, Mumbai.
Ackruti Star is a 400,000 sq ft building against which the company has raised Rs 150 crore from Future Capital’s NBFC. It has raised another Rs 150 crore from SBI and ICICI Bank by mortgaging its 450,000 sq ft commercial building Ackruti Solaris. The valuation of these buildings is close to Rs 450 crore each, at present market value, said an industry source who did not want to be named.
The company declined to comment on the fund raise. The builder had recently raised Rs 100 crore in a suburban Mumbai residential project from private equity firm Milestone Capital, which had invested from its Milestone Domestic Scheme III. The fund will invest in residential projects in tier-I Indian cities.
Ackruti has been trying to raise money in the last 6-12 months to reduce its debt. The source indicated that the builder will utilise the money raised from these two buildings to reduce debt, finish construction at a number of its projects including an SEZ in Mulund and pay over Rs 300 crore to the Slum Rehabilitation Authority for its Kala Nagar redevelopment project in Mumbai.
The builder had a net debt of close to Rs 1,800 crore at the end of March 2011. It has a land bank of 68 million sq ft and about 17 million sq ft of area under development.