Centrum Housing Finance Acquires National Trust Housing Fin Home Loan Book For Rs 112 Crore

Centrum Housing has a loan portfolio of over Rs 700 crore now and this deal will see it cross the Rs 1,000 crore mark. Begun in 2017, it offers home loans, home equity loans, land purchase and construction, and home expansion loans in 10 states, employing more than 500 people.

Centrum Housing Finance, backed by Morgan Stanley, an arm of the diversified Centrum Group, has paid Rs 112 crore for the Rs 300 crore home loan portfolio of Chennai-based National Trust Housing Finance.

Centrum Housing has signed a binding agreement to acquire the housing finance business of National Trust Housing Finance, the Centrum group said in a statement, without disclosing the value of the transaction.

However, the sources told PTI that the company headed by Jaspal Bindra paid around Rs 112 crore for the transaction.

In 2020, Wall Street brokerage Morgan Stanley paid Rs 190 crore for a 20 percent stake in Centrum Housing Finance.

Centrum Housing Finance, the affordable housing finance arm of Centrum Group, also manages Unity Small Finance Bank.

National Trust Housing Finance has been in the business of financing affordable housing since the mid-1990s and has a presence in 17 cities in four southern states. It has a loan book of more than Rs 300 crore and around 150 employees and Centrum will acquire the home finance business including the loan book, branches and employees.

Centrum Housing has a loan portfolio of over Rs 700 crore now and this deal will see it cross the Rs 1,000 crore mark. Begun in 2017, it offers home loans, home equity loans, land purchase and construction, and home expansion loans in 10 states, employing more than 500 people.

Jaspal Bindra, chief executive of Centrum Group, said the acquisition will help the company expand its geographic coverage, add origination capabilities to boost organic growth.

“There is now a greater demand for affordable housing in small cities and we believe that this sector has enormous potential for growth,” he added.

(Edited by : asmite trousers)

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