Vatika Hotels (VHPL), established in April 2004 in New Delhi, is a special purpose vehicle (SPV) under the umbrella of the Vatika Group, which makes condominiums and community housing in Gurgaon and the surrounding suburbs of New Delhi.
The private credit firm took half of the loan from Piramal Group last month and bought another portion from Goldman Sachs 6-8 months ago.
The loan has high yield interest and tenor of five years, a source close to the development said.
Both Edelweiss and Vatika Group declined to comment.
“In total, Vatika Group has refinanced debt worth ₹1,000 crore within the last 7-8 months,” said a source. “The loans were taken over by Edelweiss. Vatika Group has made repayments of around ₹650 crore to Piramal Enterprises, and ₹350 crore to Goldman Sachs. While of the ₹1,000 crore was repaid in all by the promoter, they borrowed ₹700 crore from Edelweiss as part new debt and part acquisition.”This is a good debt as the hotel industry is booming and Vatika is a good hotel, said another source.According to earlier reports from ET, Goldman Sachs had lent ₹610 crore to the Vatika Group, comprising a mix of debt and equity. Of this, ₹345 crore was used to settle Piramal Enterprises loans, while the remainder was allocated for a project along National Highway 8, ET had initially reported in February 2020.
The company faced challenges meeting its financial obligations to creditors starting from FY21, partly due to liquidity constraints arising from the nationwide lockdown imposed due to the Covid-19 pandemic.
The company currently operates a five-star hotel (The Westin Gurgaon), a luxury resort (The Westin Sohna Resort & Spa), three speciality restaurants (Coriander Leaf, 56 Ristorante and Ristorante Italiano), 18 business centres and provides facility management services, according to a Brickworks Ratings report in June 2023.
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