M3M secures Rs 1,500 crore from PAG Credit & Markets

Realty developer M3M has secured a Rs 1,500-crore (about $200 million) debt facility from
alternative investment firm PAG Credit & Markets to fund its portfolio growth, two people aware
of the development said.
“As per the deal, the money will come in four tranches of Rs 600 crore, Rs 300 crore, Rs 250
crore and Rs 350 crore and be paid back within 18 months,” said one of the people cited earlier.
“The company is also eyeing more acquisitions, so money will be used for expansion too.”
PAG and M3M declined to comment.

value of more than Rs 2,200 crore. Both projects are expected to be launched within a month.
The developer is trying to close two more land deals which will together cost Rs 1,300–1,400
crore. With this, M3M aims to build a portfolio of 10 million square feet in one year with a topline
of $2 billion, or about Rs 16,000 crore.
M3M recently acquired a 350-acre land parcel in Panipat for Rs 1,500 crore. The company will
invest about Rs 1,200 crore in the project—Rs 500 crore as development cost and Rs 600–700
crore for permissions—and develop plots and floors apart from common facilities.
The company is expected to close FY23 with sales of Rs 10,000 crore.
“NCR has witnessed rapid development and growth in recent years and has become a key hub
for real estate projects,” said Gaurav Kumar, managing director, capital markets and residential
business, CBRE India. “The pace of infrastructure improvement has also unlocked the potential
of nearby areas. As a result, the region has recorded significant growth in capital values,
enabling investors to clock healthy returns and thereby attracting attention from investors.”

Investments in real estate touched a record $7.8 billion in 2022, testifying strong fundamentals
of the Indian real estate sector, according to CBRE India. Delhi-NCR attracted nearly 30% of the
inflow into the major Indian cities, it said.
“Both global and domestic investors are back to fund real estate developers and projects. While
foreign funds are concentrating on greenfield projects, domestic funds are attempting to revive
stuck projects,” said Amit Goenka, managing director of Nisus Finance. “We are also in talks to
revive some stuck projects with last-mile funding and also fund the construction of projects that
are nearing completion.”
PAG is an APAC-focused investment firm that manages funds in multiple asset classes,
including private equity, private debt and real estate on behalf of some of the world’s leading
institutional investors.
PAG is one of Asia Pacific’s largest private investment firms with assets under management of
more than $50 billion.
According to sources, it is evaluating and financing several real estate projects in India that are
promoted by top-tier real estate developers.
M3M has 42 projects in Gurgaon that have a total of about 6 million square feet of retail space
and about 28 million square feet of overall space.