Argus Partners assists Acre in distressed loan buy

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Argus Partners advised Assets Care and Reconstruction Enterprise (Acre), a Hong Kong-based alternative investment company financed by Ares SSG, in securing stressed loan portfolios worth INR11.8 billion (USD144.5 million) from HDFC Limited.

Acre, an assets reconstruction company, paid INR6.02 billion in an all-cash deal, representing a 49% haircut for HDFC, an Economic Times report said.

The portfolio includes loans to Mumbai-based Nirmal Lifestyle Kalyan (INR4.3 billion) and Gurugram-based Vatika Group (INR7.3 billion), both of which are real estate developers.

HDFC had earlier solicited counteroffers that would exceed Acre’s basic offer of INR6.02 billion with a 5% markup (INR6.32 billion). The loans were sold to Acre as no new offers were submitted.

The Argus team consisted of partners Aastha and Nidhi Arya, senior associate Arjun Gopalakrishnan, and associates Amisha Agarwal, Arth Singhal, Astha Singhania, Avin Sarkar, Adhip Ray, Gayatri Dabir, Rohan Mitra, Rohit Singh and Tweesha Gosar. Associates Nischala Maruvada and Sakshi Sharma supported the team in the due diligence aspects of the deal.