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Ajmera Realty & Infra India Ltd has had credit facilities of INR 500 crore successfully secured by Standard Chartered Bank and ICICI Bank, as announced by the real estate firm on March 6. The funds are earmarked for the execution of Ajmera Manhattan, a residential project situated in Mumbai's Wadala area. A sum of INR 200 crore has been allocated for the partial prepayment of the GCP loan availed from HDFC Bank, as stated in the company's press release.
The deal was secured at more favourable commercial terms, thanks to the exceptional performance of Ajmera Manhattan. It is emphasised by the company that this achievement indicates its financial reliability and reinforces its commitment to achieving a 5x growth vision, as highlighted by Dhaval Ajmera, Director of Ajmera Realty & Infra India Ltd.
It is noteworthy that the deal was attained at a lower cost compared to prevailing rates, and through this structured arrangement, the payment of the GCP loan has been advanced. This strategic move is expected to align the project loan repayment more closely with project cash flows, ensuring smoother financial management.
The company previously expressed its intention to significantly reduce its corporate debt by 90 percent within three years, aiming to leverage revenue from internal accruals to achieve this goal.
According to Ajmera, the corporate debt stands at around INR 525 crore, out of a total debt of approximately INR 778 crore. The remaining debt comprises project-specific loans. The company's focus is primarily on reducing corporate-level debt first, aiming to slash around 90 percent of it within the stipulated time frame.
Regarding the Ajmera Manhattan project, it has witnessed high booking, with over 60 percent of the inventory sold as of December. The sustained demand for the project can be attributed to the exponential growth in housing demand along the Sewri-Wadala belt, largely influenced by the recent launch of the Shri Atal Bihari Vajpayee Trans Harbour Link, also known as the Mumbai Trans-Harbour Link.
In summary, the successful securing of credit facilities from Standard Chartered Bank and ICICI Bank marks a significant milestone for Ajmera Realty & Infra India Ltd, demonstrating its financial stability and strategic foresight. With the funds allocated for the Ajmera Manhattan project, the company is poised to further consolidate its position in the real estate market and continue its growth trajectory.
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