Developer Hubtown In Talks With Global, Local Private Credit Funds for ~INR 32B NCDs at 18%-20% IRR Mainly to Refi Oaktree, Samman Project Debt

Reporting: Malvika Joshi, Bhakti Tambe BSE-listed Hubtown Ltd. is in talks with global and local private credit funds for around INR 32 billion ($353.9 million) non-convertible debentures, or NCDs, at an around 18%-20% internal rate of return, or IRR, primarily to refinance around INR 28 billion project debt from Oaktree Capital Management and Sammaan Capital, three sources familiar with the development said. The Mumbai-based real estate developer is to also use some of the proceeds to pay off joint venture partners, one of the sources said without providing details of the JVs or partner names. The debt being refinanced backed two residential projects – 25 South Prabhadevi and 25 Downtown Mahalaxmi – in the southern part of Mumbai, the first and one of the other two sources said. The planned new debt is to be secured by a charge over the two projects, the first two sources said. According to information available on National Securities Depository Ltd.’s website, the projectcos for the two developments – Twenty Five South Realty Pvt. Ltd. and Twenty Five Downtown Realty Pvt. Ltd. – cumulatively have INR 28.5 billion non-convertible debentures, or NCDs, outstanding, which were issued from December 2020 to February 2024. Oaktree holds[...]