Xander Finance, the non-banking financial arm of alternative investment firm The Xander Group, has invested nearly Rs. 300 crore in two residential projects in Chennai and the National Capital Region, said a company official.
The NBFC has invested over . 120 crore in a plotted develop` ment project of realty developer VGN Property Developers in Ambattur locality of western Chennai, while it invested over ` . 160 crore in Ansal API’s low-rise residential project in sector 67, Gurgaon.
“Both the projects that we have invested in do not have much of construction risk associated with them as one of them is a lowrise and the other one is a plotted development.
This has allowed us to enter these projects before the commencement of sales. We are quite confident of cash flows arising from these projects in a shorter span due to limited construction work required to be done,“ said Amar Merani, MD, Xander Finance .The total tenure of these debt facilities are 4-5 years and disbursement to be made in tranches is linked to certain project-related milestones.
The investment made by Xander Finance in VGN Property’s Chennai project is part of a larger township, VGN Cosmopolis.
“In January, we launched the 10acre first phase of total plotted development spread over 20 acres . We will be launching our second phase by March or April. This is part of a large township VGN Cosmopolis,“ said V Pratish De vadoss, MD, VGN Property Developers.
Xander Finance has been an active investor in real estate and education for the last few years and has been deploying about . 1,000-1,500 crore in these sectors ` on an annual basis.
The Xander Group is a global investment firm focused on real estate, infrastructure, hospitality, retail and credit in emerging markets. Since 2005, the firm has committed over $2.3 billion of capital to the Indian market across private, public, credit and venture investments.
In November, in the largest single deal in the retail real estate sector in India, Xander Group’s arm Virtuous Retail formed a $450 million joint venture with Dutch pension fund asset manager APG Asset Management.
The new entity has acquired an initial portfolio of three retail assets from a Xander-sponsored fund in a transaction valued at about ` . 2,000 crore, or $300 million.
APG and Xander have committed an additional $150 million as equity capital giving the new company investment capacity of about $300 million that will be used to expand the portfolio through new acquisitions and greenfield development.