(Commonwealth)_ Twenty-Five Downtown Realty, formerly known as Joyous Housing, has secured a substantial investment of Rs 250 crore from global asset manager Oaktree Capital for a period slightly exceeding two years, with an interest rate of 18% per annum, according to sources familiar with the matter as reported by ET. This financing comes amidst an ongoing dispute over ownership involving DLF and the Shapoorji group, who have alleged that the entity linked to Hubtown, previously known as Twenty-Five South Realty, colluded with Omkara Asset Reconstruction Company (ARC) and PNB Housing Finance to gain control. However, officials from Hubtown, PNB Housing, and Omkara ARC have refuted these allegations. The matter is currently under consideration by the Delhi High Court.
The funds raised have been structured as secured, unlisted, unrated non-convertible debentures, maturing on March 31, 2026. The proceeds from this financing are designated for general corporate purposes and project approval costs, as per disclosures made to the National Securities Depository Ltd (NSDL). At the core of the dispute lies the allegation by DLF and Shapoorji Pallonji that Twenty-Five South Realty, associated with Hubtown, has surreptitiously gained control of Twenty-Five Downtown Realty. Originally, Twenty-Five Downtown Realty was established as a three-way joint venture, with DLF and Shapoorji Pallonji’s Chinsha Property holding a 37.5% stake each, and Hubtown holding the remaining 25% stake.
This controversy has arisen amidst Twenty-Five Downtown Realty’s involvement in securing a mandate from the Maharashtra government’s slum rehabilitation authority for a substantial 17-acre project. The infusion of funds from Oaktree Capital is expected to provide a significant financial boost to Twenty-Five Downtown Realty, enabling it to pursue its corporate objectives and advance its projects, notwithstanding the ongoing legal dispute over ownership. The structured nature of the financing, in the form of non-convertible debentures, provides a secure avenue for raising capital, albeit at a relatively high-interest rate.
The involvement of global asset manager Oaktree Capital underscores the attractiveness of the real estate sector in India, despite the challenges posed by legal disputes and regulatory uncertainties. Oaktree’s investment signifies confidence in the long-term prospects of Twenty-Five Downtown Realty and its ability to deliver value in the highly competitive real estate market.
Nevertheless, the outcome of the ownership dispute will undoubtedly impact the trajectory of Twenty-Five Downtown Realty and its future operations. Until a resolution is reached, the company may face hurdles in fully realizing its potential and executing its strategic plans.
The infusion of Rs 250 crore from Oaktree Capital marks a pivotal moment for Twenty-Five Downtown Realty, occurring amidst a contentious ownership dispute with industry giants DLF and the Shapoorji group. This substantial financing injection represents a significant boost for the company, furnishing it with vital resources to advance its corporate aims and propel its project development initiatives forward. However, the backdrop against which this funding has been secured is one of legal ambiguity and ongoing dispute, injecting an element of uncertainty into the company’s trajectory. It is worth noting that Twenty-Five Downtown Realty, formerly known as Joyous Housing, finds itself embroiled in a multifaceted ownership imbroglio. The company, originally established as a three-way joint venture involving DLF, the Shapoorji Pallonji group-promoted Chinsha Property, and Hubtown, has seen its ownership structure come under intense scrutiny and dispute. The allegation by DLF and the Shapoorji Pallonji group that Twenty-Five Downtown Realty is inexorably linked to Hubtown, which purportedly gained control through surreptitious means, underscores the complexity and contentious nature of the situation
