Puravankara eyes $150-mn PE funding

Bangalore-based realty developer Puravankara Projects is planning to raise nearly $300 million (Rs 1,320 crore) to fund its new projects and buy land in the current financial year. The company will be raising $150 million through bank debts to fund new projects and the remaining amount from private equity investors for buying land, said Ravi Ramu, director (finance), Puravankara. The company is eyeing PE funding as commercial banks have put curbs on loans for buying land. Currently, Puravankara has a land bank of 125 million sq ft. The company’s plans come on the back of a sharp fall in the BSE Realty Index, along with a rise in lending rates, curbs on external commercial borrowings (ECBs) for developers, a fall in pre-sale deals for residential apartments, among others, leading to restricted cash flow to developers. The BSE Realty Index has fallen by 61 per cent from its peak in January.