Bengaluru: Vatika Hotels Pvt. Ltd, owned by real estate and hospitality firm Vatika Group, has raised Rs495 crore in debt from Axis Bank Ltd, which it will use to expand its hotels and quick-service restaurant chain besides its business centres, a top company executive said.
The Gurgaon-based company will also invest part of the capital in a new venture, Grapes, under which it will launch co-working office spaces.
The first such co-working centre will be opened in Gurgaon soon.
Earlier this month, the real estate development arm of Vatika Group raised Rs700 crore from Altico Capital India Pvt. Ltd, the non-banking financial company of Asia-focused investor Clearwater Capital Partners Llc, for a portfolio of residential projects within its flagship township in Gurgaon.
In a second transaction, Piramal Fund Management Pvt Ltd has extended Rs425 crore as construction finance for the developer’s commercial office project in Gurgaon.
“The debt from Axis Bank will help us in aggressively growing our hospitality portfolio across businesses even during a time when overall market sentiment is weak,” said Gaurav Bhalla, managing director of Vatika Hotels.
“We have raised these funds essentially for the aggressive growth plans for Vatika Hotels Pvt Ltd, which includes the construction of additional towers at the Westin Gurgaon and more villas at the Westin Resort and Spa,” he added.
In December 2014, Goldman Sachs Group Inc. bought shares worth Rs255 crore in Vatika Hotels.
Bhalla said the firm had recently signed an agreement with Goldman Sachs to buy back the shares, over the next year or so.
The firm’s quick-service restaurant chain, Nukkadwala, which was launched in August 2015 and serves regional flavours from across the country, is looking to open 18 outlets in New York and another 13 in London.
The company, which already has 12 operational outlets in Gurgaon and Delhi, will open 13 more outlets in these locations.
The plan also includes adding to the chain of 15 Vatika business centres that are currently operational in cities across the country.
An Axis Bank spokesperson declined to comment on the transaction.
“Demand for office space is evolving, and more corporates across industries will adopt innovative workplaces in the near future. To reduce their financial burden and also to motivate and retain talent, more corporates could turn towards co-working spaces,” said Anuj Puri, chairman and country head at property advisory JLL India, in a note last week.
“There is currently very limited supply of co-working spaces; however, once that situation improves, the demand for them will be considerable,” Puri added.