JSW Realty, the real estate division of the JSW Group, is in advanced negotiations to secure a loan of Rs 1,600 crore (approximately $169 million) from Tata Capital Ltd., a shadow lender, as per sources familiar with the matter.
The company is looking to obtain this five-year loan to finance an office development near Mumbai’s Bandra business area. The sources, who requested anonymity due to the private nature of these discussions, indicated that the loan interest rate is likely to fall between 9% and 11% per annum, whereas the yield on current five-year government bonds stands at 6.47%.
The terms are still being discussed, and no final agreement has been reached yet. Representatives from JSW Realty and Tata Capital, a division of India’s oldest conglomerate, did not respond to requests for comments.
JSW Realty, which engages in developing residential, commercial, and mixed-use properties, aims to expand its footprint in Mumbai, where competition for land and redevelopment projects is becoming more intense.
There is growing demand for premium commercial properties, driven by Global Capability Centers (GCCs) and flexible workspace providers, according to Kotak Institutional Equities, which supports ongoing growth in this sector.
