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Acre ARC buys distressed loans from HDFC for Rs.602-Cr

Economic Times  

Hong Kong-based alternative investment fund Ares SSG-backed Acre Asset Reconstruction Co (ARC) purchased a handful of loan portfolios from Housing Development Finance Corp (HDFC) aggregating to INR 1,180 crore in an all-cash deal completed last week. The portfolio includes loans to Gurugram-based real estate developer Vatika Group (INR 730 crore) and distressed Nirmal Lifestyle Kalyan (INR 430 crore). Acre ARC paid INR 602 crore in an all-cash deal, representing a 49% haircut for HDFC. Earlier, HDFC had called for counter bids to top Acre ARC's base bid of INR 602 crore at a 5% markup (INR 632 crore). Since no fresh bids were received, the loans were sold to Acre ARC.