Of the total, Vatika Group will use Rs 245 crore to expedite the construction of the first phase of a commercial project located on NH-8. The projects will be developed in 3 phases comprising 2.2 million sq ft., Vatika said in a statement on Friday.
The investment is a debt instrument structured as a project finance facilitating a partial refinance to Piramal Enterprises and the balance towards construction, it added.
Separately, Goldman Sachs has extended a debt facility to Vatika Hotels to the tune of Rs 365 crores facilitating a pre-payment to Piramal Enterprises on the same asset.
“We at Vatika Group envision fulfilling the rising demand of the grade A commercial spaces in Delhi NCR. Such debt instruments being extended by mature funds such as Goldman Sachs is the need of the hour ensuring completion of assets while allowing for partial refinance. The investment by Goldman will surely accelerate in delivering the project on time,” Gaurav Bhalla, Managing Director, Vatika Group, said.
The deal marks third such transaction between Goldman Sachs and Vatika Group. The investment banking firm had invested Rs 100 crore in Vatika Business Park in 2007, and Rs 255 crore in Vatika Hotels in 2014. Vatika Group had separately formed two joint ventures with Singapore’s sovereign wealth fund GIC to develop two residential projects on Dwarka Expressway in 2014.
Vatika Group said it has delivered 42.3 mn sq ft, and has a wide range of commercial projects spread across prime locations in Delhi-NCR including MG Road, Golf Course Road, Golf Course Extension Road, Sohna Road, NH-8 and Mathura Road.