Global alternative investment firm Varde Partners has lent about Rs 750 crore to Phoenix Group via a mezannine debt transaction.
The developer would use the finance for construction work, even as it is considering converting a special economic zone (SEZ) project into a non-SEZ one.
Early this year, sovereign fund GIC bought a IT-SEZ spread over 1.1 million sq. ft. in Gachibowli, Hyderabad from the Phoenix Group for Rs 1,050 crore. The project 'Phoenix Aquilla' has two towers across 1.8 million sq. ft., and the first tower is completed and leased.
Moreover, the firm is looking to invest up to USD one billion, and in 2022, it lent Rs 440 crore to Omaxe and another Rs 400 crore to Casagrand to buy land parcels. Varde has already deployed over USD three billion across 20 different transactions in India in the last four years.
Mezz debt is a subordinated debt, which is paid only after the senior lender is settled completely.