HDFC PMS had invested Rs 190 crore in the realtor's three projects at Virar, Dadar & Chembur
While a number of real estate companies continue to struggle with their financial commitments to their lenders, one of Mumbai's leading developers Ekta World has gone ahead with its payment of Rs 190 crore to HDFC Portfolio Management Services (PMS).
A unit of HDFC Asset Management Co Ltd, HDFC PMS had subscribed to 'optionally convertible debentures' (OCDs) of Rs 190 crore, which was used by Ekta World to fund its projects located at Virar, Dadar and Chembur in 2010.
The OCDs have been redeemed along with interest of Rs 112 crore thus, the total amount being repaid to HDFC PMS is Rs 300 crore.
Commenting on the development, Ashok Mohanani, chairman and managing director, Ekta World, said, the company has closed the transaction as per stipulated terms in the agreement with HDFC PMS. "This is an achievement as it also symbolises that the property market is upbeat with a strong demand," he said.
According to the realtor, of the Rs 190 crore raised from HDFC PMS, Rs 141 crore was invested in Ekta Parksville, a township project at Virar and the balance Rs 49 crore was invested in two high-end projects – Ekta Invictus at Dadar and Ekta Occulus at Chembur. The investments were made by way of subscribing to 'optionally convertible debentures' (OCDs) issued by Ekta World.
In its 27th year of operations in Mumbai's real estate market, Ekta World has delivered over 14.4 million square feet to over 14,500 families. The realtor is currently executing 13 projects spread across Mumbai, Pune and Nashik having a constructible area of 5.5 million square feet.
Earlier in the year, the realtor had entered into two separate joint venture with Godrej Properties and Puravankara Projects respectively to develop its land parcels in Pune.
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