Chennai: As part
of its ongoing endeavor to strengthen services towards the real estate industry
in India, Cushman & Wakefield in India announces the launch of the ‘Debt
Financing’ Services as part of its Capital Markets division. With this, the
current portfolio of financial services is expanded to include both private and
public sector bank funding as well as investment sales.
The Cushman & Wakefield Debt Financing services will
include Debt Syndication, Private Placement of Debt Capital Products,
Acquisition Financing, Refinancing, Special Situations & High Yield
Financing and Trade Credit Advisory. Cushman & Wakefield will service the
real estate requirement across sectors, including Infrastructure, Engineering
Procurement & Construction (EPC) Hospitality, Healthcare, and Education
amongst others.
Sanjay Dutt, Executive Managing Director, South Asia,
Cushman & Wakefield, commented “This widened capability in debt and equity
advisory is in addition to our traditional capital markets and land industrial
activities making us the preferred one stop shop for real estate capital
markets services throughout India.”
Sanjay said, “The Indian real estate sector has been growing
steadily over the years, despite government regulations on funding options for
development in the last few years. The RBI directives also increased the risk
weightage on Real Estate further discouraged financial institutions from making
highly speculative investments. This has led to a severe shortage of funding
options. While private equity and investments from HNI have their limitations,
financing from domestic Institutional investors is a very viable option. Public
sector financial institutions can provide debt at lower rates as well as for
longer periods which makes them an attractive option. However, such financing
is also skeptical about the project that they enter.”
Sanjay further added, “It is estimated that debt worth over
US$ 24 Billion has been loaned out to the real estate and development sector
and is further estimated to rise moderately by the end of FY 2012- 13.
Commercialization of more public sector had resulted in their increased
willingness to provide funding to large infrastructure and real estate projects
at reasonable rate of return.”
This Debt Financing Services will be complementing Capital
Markets Group, which currently provides services such as structured equity and
debt services, capital advisory including equity raising for pooled funds and
programmatic club and joint venture transactions and development project
funding.
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