Edelweiss invests Rs 355 Cr in Hubtown's two residential projects in Mumbai

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Edelweiss Group has invested Rs 355 crore in realty developer Hubtown’s two under-construction residential projects in Mumbai through its non-banking finance company ECL Finance and two funds Edelweiss India Real Estate Fund and EREF Onshore Fund-- managed by the group. Of the funds, ECL Finance invested Rs 205 crore in the developer’s project Hubtown Seasons in Chembur suburb of Mumbai and infused Rs 150 crore in Hubtown Harmony, a premium development at Matunga in central Mumbai. “Both projects are under construction, with all approvals in place and the investment from Edelweiss shall be utilized towards ensuring faster completion of both projects, aside from partly refinancing of the existing lenders,” Hubtown stated. Hubtown Seasons is spread over a 10-acre land parcel and is a public-private partnership (PPP) project with the government of Maharashtra. The sale potential in the first phase funded by Edelweiss is around 3.5 lakh sq ft of area, and the government obligations in respect of the first phase are completed, and the focus will now be on completing the sale area within the next 2 years. The Matunga project is spread over an acre near King’s Circle, and is a redevelopment project, wherein the redevelopment component is completed and handed over, and now the company is focussing on ensuring delivery of the sale component of 1 lakh sq ft within 2 years. About 20% of the project in Matunga has been sold, while the developer has already achieved 30% sales at the Chembur project.