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M3M Realty has secured a Rs 1,500 crore debt facility from alternative investment firm PAG Credit & Market for eyeing its portfolio expansion.
The money will be paid back in four instalments of 600, 300, 250, and 350 crores over the course of 1.5 years. The funds will be used to expand the portfolio and make additional land acquisitions.
M3M recently completed two land transactions in Noida and Panipat totaling more than Rs 2,200 crore in acquisition value. Both projects are set to go live within a month or two.
The developer is also attempting to close two more land deals worth Rs 1,300-1,400 crore. M3M hopes to build a 10 million square feet portfolio in a year with a top line of more than Rs 16,000 crore.
M3M recently paid Rs 1,500 crore for a 350-acre land parcel in Panipat. Apart from common facilities, the company will invest approximately Rs 1,200 crore in the project (Rs 500 crore for development and Rs 600-700 crore for authorizations).
M3M has a total 42 projects in Gurgaon totaling almost 6 million square feet of retail space and roughly 28 million square feet of overall space.
Many global and domestic investors want to fund real estate developers for their upcoming projects. Foreign funds mostly focus on greenfield projects as domestic funds commonly invest in reviving stuck projects.
PAG is an Asia Pacific focused investment firm that manages funds across multiple asset classes, including private equity, private debt, and real estate, for some of the world’s most prestigious institutional investors.
PAG is one of Asia Pacific’s largest private investment firms, with more than $50 billion in assets under management.
According to sources, it is evaluating and financing a number of real estate projects promoted by top-tier real estate developers in India.