Century Real Estate Holdings, the real estate arm of the Century Group has raised Rs.100 crore though private placement of NCDs last week.

The funds raised will be utilize towards project development. Century Real Estate has plans to launch 7 new projects with a built-up area of 1.7mn sqft in the next 8 months. It currently has 9 ongoing projects with a total built-up area of 1.2 mn sqft in various parts of the city.

Nishith Desai Associates acted as legal counsel to the investors.

Transaction Reference: Dealcurry

Century Group, owned by real estate veteran Dayanand Pai, has over 3,000 acres of land in and around Bangalore city alone worth over $2 billion in asset value and has a development portfolio of over 10 million sq ft comprising hotels, office buildings, residences, educational institutions and integrated townships.

In 2007, the group diversified into development of projects and has delivered residential projects covering 1.5 million square feet in an effort to move up the value chain and derive more value for its land bank.

Drawbridge Global Macro, popularly known as Fortress holds stake in Century Real Estate with an investment of $75 mn. In 2009, Goldman Sachs had also invested in a seven star hotel project of Century. The company posted Net Income of Rs 11mn in the year 2007-08.

In its bid to go public, Century has planned to file the DRHP with SEBI for IPO by November this year.

Real estate sector, which was badly hit during recession, has seen an upward trend in recent times. And due to revival in the market, many real estate players have raised and are planning to raise amount through various routes.

This year, many real estate players have raised PE. HDFC Venture Funds invested Rs.500 Cr in one of the projects of Lodha Developers for 10% stake, Indiaret Fund's acquired minority stake in SOBO Central Mall, Panchshil Realty raised Rs.520 Cr from the Xander Group for developing hotels across the country, Ozone Group raised Rs 200 Cr from Urban Infrastructure Real Estate Fund for its 'Urbana' township project in Devanhalli, Bangalore. HCC sold a 74% stake in a commercial building in Mumbai’s eastern suburbs to the IL&FS Milestone Fund for Rs.575 cr 2 months ago, a valuation of Rs 775 Cr.

Rohan Lifescapes Ltd is also planning to raise Rs.400-500 Cr through PE and DB Realty is in talks with private equity firms to raise Rs.1,200 Cr ($256 million) by diluting 20% stake in its Bandra Government Colony project.

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