JLLM’s Capital Mkts division closes Rs419 cr deals
The Capital Markets division at Jones Lang Lasalle Meghraj (JLLM) has recently closed deals for more than INR 419 crores using debt structuring. "With the rising complexity that the financial markets have experienced recently, newer avenues of raising funds are gaining ground," said Sanjay Dutt, CEO – Business, Jones Lang LaSalle Meghraj.
"The complexity and skepticism associated with funding of real estate projects in particular has made the situation even more challenging for the investors and developers alike. With the changing market dynamics, it has become imperative to provide the most innovative solutions to clients, thereby adding real value to their assets. These recent deals by our our Capital Markets team are examples of this."
A striking feature about such deals is that the developers have a better grip over the cash flows and debt financing is cheaper than other sources whilst promising fixed returns. "Debt has gained prominence in recent times because of the pressure on Government banks with regards to exposure to real estate," said Sanjay Dutt. "Private equity comes at a cost that many developers are unwilling to embrace."