JM Financial Ltd has helped Golden
Gate Properties to raise Rs 200 crore through non-banking financial company
(NBFC). This is a non-convertible debenture (NCD) issue which provided a new
life to the real estate firm as all the operation were stalled for the past two
years as there was a severe liquidity crunch. In 2007 similar investments were
done by the RREEF Alternative Investments for 70 million dollars and by
Citigroup for Rs 150 crore. Sanjay Raj the executive director of Golden Gate
Properties announced that the fund amount raised at this point of time will be
used to revive the Golden Grand Project. More investments shall be expected in
the near future at project levels or entity levels. NCD is said to be a debt
instrument which cannot be converted to stock shares and is expected to yield
14-20% returns. NBFCs and private equity funds are some of the alternate
sources of capital which the real estate developers in India have been relying
on.
