Cushman and Wakefield launches debt financing services

Cushman and Wakefield has launched the 'Debt Financing' services to strengthen services towards the real estate industry in India, a top company official said today.

The Cushman and Wakefield Debt Financing services will include debt syndication, private placement of debt capital products, acquisition financing, refinancing, special situations and high yield financing and trade credit advisory, company Executive MD (South Asia) Sanjay Dutt said in a statement.

The company will service the real estate requirement across sectors, including infrastructure, engineering procurement and construction (EPC) hospitality, healthcare and education, amongst others, Dutt said.

The Indian real estate sector has been growing steadily over the years, despite government regulations on funding options for development in the last few years, he said.

Dutt said the RBI directives to increase the risk weightage on real estate further discouraged financial institutions from making highly speculative investments. "This has led to a severe shortage of funding options," he said.

He said it is estimated that debt worth over $24 billion has been loaned out to the real estate and development sector and is further estimated to rise moderately by the end of FY2012-13.

The debt financing services will complement its capital markets group, which currently provides services such as structured equity and debt services, capital advisory, including equity raising for pooled funds and programmatic club besides joint venture transactions and development project funding, Dutt said.