Business Standard

As NBFCs turn off tap, realty funds see deal proposal spurt but remain wary

Given the demand for funds and tight lidquidity, PE funds are charging 150 to 200 basis points more in the new deals

Illustration by Binay Sinha
Premium

Illustration by Binay Sinha

Raghavendra Kamath Mumbai
After non-banking finance companies (NBFCs) tightened liquidity flow to property developers over the past month, private equity (PE) funds are seeing a spurt in proposals from developers for funding. 
"Developers need capital to sustain the current cycle. From that perspective, they are coming," said Vikas Chimakurthy, chief executive officer (CEO) at Kotak Realty Fund.  
Defaults at Infrastructure Leasing & Financial Services (IL&FS) has made it difficult for NBFCs to raise money, forcing them to avoid new lending and stop the disbursal of already sanctioned loans.
Sharad Mittal, CEO at Motilal Oswal Real Estate Fund, said after NBFCs had gone slow on lending to developers, deal flow had

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in