Advancing properties and enhancing localities.
Vatika raises Rs 495 crore from Axis Bank for hospitality arm
Gurgaon-based real estate firm Vatika Group raised Rs 495 crore from Axis BankBSE 1.49 % as term debt for supporting the growth plans of its hospitality arm, Vatika Hotels.
This is the third such fundraising transaction by the group within a week.
The money will be used to construct an additional tower at its hotel property, Westin Gurgaon, and villas at the Westin Resort and Spa, according to two people in the know of the matter. “The company also plans to use the money for expanding its business centres and its new venture, Nukkadwala, a quick service restaurant,” one of them said.
“We have raised these funds essentially for the aggressive growth plans of Vatika Hotels. The company had received term sheets from several banks, including Yes BankBSE 0.58 %, IDBI and Standard Chartered, but we chose Axis Bank as our partner,” said Gaurav Bhalla, managing director of Vatika Hotels.
Axis Bank didn’t respond until press time Wednesday to an email seeking comment.
The Vatika Group had recently raised Rs 700 crore from non-bank financial company Altico Capital and another Rs 425 crore as construction finance from Piramal Fund Management, the real estate investment arm of Piramal Enterprise.
Vatika Hotels operates two hotels under the Westin brand, in Gurgaon and Sohna. It runs 12 business centres under the Vatika Business Centre brand, and has 15 offices spread across New Delhi, Gurgaon, Noida, Mumbai, Bengaluru, Chennai, Hyderabad and Pune.
The hospitality arm also runs the quick service restaurant chain Nukkadwala, and plans to open around 25 outlets of it across Delhi, Noida, Greater Noida, Faridabad and Bengaluru by the end of 2017.
US banking group Goldman Sachs had acquired an undisclosed stake in Vatika Hotels for Rs 255 crore in December 2014. The group had planned an IPO in 2009 but did not go ahead with it as the markets crashed after the Lehman Brothers collapse in 2008. It again tried to tap the markets in 2010, but failed.
The company has delivered around 42 million sq ft so far and has an extra 50 million sq ft under construction across residential townships, offices and hotels.