Key facts
- JSW Realty is in advanced talks to raise a 16 billion rupee ($169 million) loan from Tata Capital.
- The loan is intended to finance an office project near Mumbai's Bandra business district.
- The proposed five-year loan is expected to be priced at 9%-11% annually.
- The transaction has not yet been finalized.
JSW Realty, the real estate division of India's JSW Group, is reportedly in advanced negotiations with Tata Capital Ltd. to secure a loan amounting to 16 billion rupees, approximately $169 million. This five-year loan is earmarked for the development of an office project situated near the Bandra business district in Mumbai. Sources familiar with the matter indicate that the loan is expected to carry an annual interest rate between 9% and 11%, a rate significantly higher than the current 6.47% yield on five-year government bonds. The discussions are ongoing, and the transaction has not yet been finalized. JSW Realty has been increasing its footprint in Mumbai, a market characterized by intense competition for land and redevelopment opportunities. Demand for premium commercial properties is being bolstered by Global Capability Centers and flexible workspace providers, according to Kotak Institutional Equities, which supports the sector's ongoing expansion.