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L&T Finance is looking for buyers for a distressed real estate portfolio that includes loans granted to the Pune-based Xrbia Group according to reports published in ET Realty. The corporation has requested proposals for a loan book totalling Rs 880 crores that were issued to five Xrbia Group companies according to the sources. L&T has not established a reserve price for the portfolio but is still accepting expressions of interest (EoI) from asset reconstruction companies.
The five accounts are Xrbia Developers which has a debt of 435 crores, Xrbia Chakan Developers which has a liability of 164 crores, Xrbia Warai Developers which has a debt of 156 crores, Xrbia Ambience Properties LLP which has a debt of 107 crores and Eiffel Lifespaces which has a debt of 18 crores.
Offers are being accepted by L&T Finance under the 15:85 structure, which includes 15% of the consideration in cash and the rest 85% as security receipts (SR) due upon recovering the loans from the borrower. According to sources, L&T Realty has received six EoIs from ARCs.
The Xrbia group began its real estate business in 1995 and has since completed projects with more than 14 million square feet of the saleable area according to a report by ICRA Ratings dated September 21, 2022. The outlook for the Rs 350 crore debt was changed from positive to stable in May 2019, when ICRA last rated Xrbia Developers by assigning a BBB+ rating. ICRA added that there are around twenty projects in various stages of development, including mid-luxury homes, planning schemes and affordable housing.
L&T Finance does not provide investors with information on its gross or net non-performing assets in its quarterly reports. According to the company's presentation to analysts, its gross stage three (GS3) loans were 3,723 crore or 4.21% of all loans as of December 31, 2022. The same presentation showed that the GS3 was $5,623 crore for the quarter ending in December 2021.
L&T Finance is a subsidiary of Larsen & Toubro Limited, one of India's largest engineering conglomerates. L&T Finance provides a wide range of financial products and services, including loans, insurance, wealth management, and investment banking. The company operates in various sectors, including rural finance, housing finance, infrastructure finance, and corporate finance.
Xrbia Group is a real estate developer based in India, with a focus on affordable housing projects. The company was founded in 2012 by entrepreneur Rahul Nahar. The company has completed several large-scale projects across India and has received numerous awards for its contributions to the affordable housing sector.
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