Sikka group raises Rs 130 cr from NBFC to complete Noida housing project

Realty firm Sikka group has raised Rs 130 crore from a non-banking finance company (NBFC) to complete its ongoing housing project in Noida, a top company official said Thursday.

NBFCs have been a major source of funding in the last few years for cash-starved real estate firms, which are facing huge demand slowdown. Of late, even NBFCs have restricted lending to this sector because of liquidity crisis post default by IL&FS.

The company said the NBFC is a Reserve Bank of India registered Alternative Investment Fund (AIF) but did not disclose the name.

The Delhi-based Sikka group said that the fund has been raised in the form of debt and the same will be utilised to complete its housing project Sikka Kaamna Greens, comprising 13 towers and 1850 units, in Noida, Uttar Pradesh.

The project is about 80 per cent complete and the company needed some last mile funding to fully execute the project. It will deliver about 750 units by December this year and the remaining by end of the next year.

"We are committed to deliver all our projects to home buyers and are taking every possible step to make things work. The Rs 130 crore fund that we have raised will be utilised to pace up the construction at Sikka Kaamna Greens being developed in Noida," Sikka group MD Harvinder Singh Sikka said.

He said the company is completely focusing on giving possessions.

Sikka group has so far developed 3 million sq ft housing and commercial projects, mostly in the national capital region.

At present, the group has 10 ongoing residential and commercial projects in North India. Under hospitality, the group has hotels in Gurugram and New Delhi. It plans to open more hotels in Bareilly, Dehradun, and Muzaffarnagar.