PE Firms Advising Discounts To Homebuyers
Private equity firms are advising their investee companies to remain liquid by offering discounts to homebuyers and concluding sales, reducing cost pressures and availing repayment moratoriums offered by banks on both term and working capital loans. To optimize cash-flow management in the current business environment caused by the Covid-19 pandemic, private-equity funds are prompting them to resume construction work at sites by offering incentives to the available labourers. “You can’t choose profitability over cash-flow in the current environment. We are asking developers to remain liquid by opting for moratorium, liquidating completed inventory at a discount and resuming activity at all sites as quickly as possible,” said Sharad Mittal, CEO, Motilal Oswal Real Estate Fund (MORE).
Tags : News/Views Latest News homebuyers Private Equity COVID-19 pandemic labourers investee companies capital loans Discounts To Homebuyers cash-flow management construction work