M&A

M&A

HDFC sells Rs.1,300-Cr bad loans to ACRE ARC for Rs.305-Cr

Economic Times  

HDFC, which merged with HDFC Bank last week, has sold a portfolio comprising eight real estate accounts, including those of Tridhaatu Realty, ATS Infra, Paranjape Schemes and Puranik Builders, for INR 305 crore to Assets Care and Reconstruction Enterprise (ACRE) ARC. The combined outstanding loan amount of this pool was approximately INR 1,300 crore, translating into a recovery of around 23%. ACRE ARC, backed by Ares SSG, emerged as the anchor bidder, offering INR 305 crore upfront cash for the purchase. Additionally, HDFC is entitled to 65% of all recoveries above INR 85 crore for one group of accounts. This is the third pool of loans that HDFC has sold to ACRE ARC. Last year, in June, HDFC sold four corporate accounts to ACRE ARC for INR 270 crore against the total loan of INR 577 crore, resulting in a recovery of 47%. In October, HDFC sold INR 1,180 crore loan to ACRE for INR 602 crore, resulting in a 51% recovery for the mortgage lender.