Century Real Estate Secures ₹450 Crore Funding from Edelweiss

Century Real Estate Holdings Pvt Ltd, based in Bengaluru, has successfully obtained ₹450 crore in debt financing from Edelweiss Alternative Asset Advisors Limited, the asset management arm of the Edelweiss Group. The funds will be allocated towards various purposes, including the acquisition of a 72-acre land parcel near the Bengaluru international airport at Devanahalli, repayment of existing debts, and bolstering working capital for ongoing and upcoming projects.

The decision to utilize 40% of the funds for acquiring the land parcel reflects Century Real Estate's strategic focus on expanding its footprint in key growth areas, particularly in the burgeoning residential market near the airport. The remaining portion of the funding will be dedicated to debt repayment and supporting operational requirements, underscoring the company's commitment to maintaining financial stability and liquidity.

Ravindra Pai, Managing Director of Century Real Estate, emphasized the robust performance of Bengaluru's residential market post-COVID, highlighting the company's achievement of a sales milestone of ₹1,000 crore in FY24. With ambitious plans to double sales to ₹2,000 crore in FY25, Century Real Estate aims to leverage its substantial inventory pipeline, comprising residential and plotted projects, to capitalize on the growing demand for quality real estate offerings in the region.

The transaction with Edelweiss Alternative Asset Advisors Limited reflects the increasing trend of debt financing in the housing sector, driven by the momentum in residential sales and the corresponding need for adequate working capital. Notably, several private equity and real estate credit funds have been actively participating in financing residential projects, signaling confidence in the sector's growth prospects.

Century Real Estate's extensive track record in delivering successful residential and commercial projects, combined with its robust pipeline of ongoing developments, positions the company for sustained growth and value creation in the dynamic real estate landscape of Bengaluru and beyond.

The successful funding transaction between Century Real Estate and Edelweiss Alternative Asset Advisors Limited underscores the collaborative efforts to support the growth and development of India's real estate sector, facilitating investments in strategic projects that contribute to economic prosperity and urban development.