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| Brigade to raise Rs 300 cr debt |
| Raghuvir Badrinath / Chennai/ Bangalore Feb 27, 2009, 00:10 IST |
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Company claims, not under pressure to restructure debt.
Brigade Enterprises, the Bangalore-based publicly-held Rs 750 crore real estate developer, is planning to raise Rs 300 crore debt during this calendar year. The company has stated that it has a credit line of around Rs 700 crore from which they will draw the Rs 300 crore. The company has a debt of Rs 350 crore and post the draw down of Rs 300 crore additional debt, the company will be leveraged around 0.5 to 0.6 times.
The average cost of borrowing for the company has been around 13 per cent and the company hopes there will be some downward trend for the fresh debt it will raise during the year.
A Anil Kumar, CFO, Brigade Enterprises said they have 350 acres of land available for development and they are focussed on completing the ongoing projects on time. According to Brigade, on-going projects include two enclaves, 12 residential and two hospitality projects. Forthcoming projects include 4 integrated lifestyle enclaves, 14 residential, nine commercial and five hospitality properties.
The company has been managing to stay afloat in the current turmoil and has noted that they are not under pressure of debt restructuring. “Sales have indeed come down during the fag end of the 2008. There is no immediate pressure on our earlier debt and we are capable of paying back as and when it is due,” he noted. The company has cash of Rs 86 crore.
Brigade Enterprises is also toying with idea of spinning of its hospitality subsidiary and is hoping of raising some equity through the private equity route.
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