Vatika Hotels: Edelweiss Alternatives lends Rs 700 cr to Vatika Hotels to refinance existing debt

MUMBAI: Edelweiss Alternatives has provided a ₹700 crore loan to Vatika Hotels, which owns The Westin Gurgaon, by partly buying out the existing debt from Piramal Group and Goldman Sachs India.

Vatika Hotels

Vatika Hotels (VHPL), established in April 2004 in New Delhi, is a special purpose vehicle (SPV) under the umbrella of Vatika Group, which builds condominiums and community housing in Gurgaon and surrounding suburbs of New Delhi.

The private credit firm took half the loan from Piramal Group last month and bought the other half from Goldman Sachs 6-8 months ago.

The loan has a high interest rate and a tenure of five years, a source close to the development said.

Both Edelweiss and Vatika Group declined to comment.

“In total, Vatika Group has refinanced loans worth ₹1,000 crore within the last 7-8 months,” a source said. “The loans were taken by Edelweiss. Vatika Group has paid around ₹650 crore to Piramal Enterprises and ₹350 crore to Goldman Sachs. While out of the ₹1,000 crore that was repaid by the promoter, they had borrowed ₹700 crore Another source said, “It is a good loan because the hotel industry is growing rapidly and Vatika is a good hotel.” According to previous reports by ET, Goldman Sachs had given a loan of Rs 610 crore to Vatika Group, That includes a mix of debt and equity. Of this, ₹345 crore was used to settle Piramal Enterprises’ debts, while the remaining amount was allocated for a project along National Highway 8, ET reported. Was reported in February 2020.

The company faced challenges in meeting its financial obligations to creditors starting in FY21, partly due to liquidity crunch arising from the nationwide lockdown imposed due to the COVID-19 pandemic.

The company currently operates one five-star hotel (The Westin Gurgaon), one luxury resort (The Westin Sohna Resort & Spa), three specialty restaurants (Coriander Leaf, 56 Restaurant and Restaurant Italiano), 18 business centers and provides facility management services. Does it. in June 2023, according to Brickworks Ratings report.

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