FCC

L&T Finance sells real estate loans to Phoenix ARC

2023-07-05

According to persons with knowledge of the event, L&T Finance, a division of the publicly traded L&T Finance Holdings, sold a stressed portfolio with a total loan value of 718000 million to the Kotak Mahindra Bank-backed Phoenix Asset Reconstruction Company (ARC) during an auction last week.

According to the sources, six real estate accounts from the portfolio were sold for a total of 710,750 million, representing a 60% profit for L&T Finance. A notice posted by the financing company on its website at the beginning of last month stated that the company was seeking proposals under a 15:85 structure for ten accounts totaling $3,0225 million in loans.

Phoenix ARC purchased Nirmal Lifestyle Developers with loans totaling $790 crore, Nirmal Lifestyle Malls with loans totaling 7231 crore, Brownish Realty with loans totaling 222 crore, Coast Realtors with loans totaling R113 crore, Poise Realtech with loans totaling 279 crore, and SU Toll Road with loans totaling 168 crores.