ATS Launched Affordable Housing Scheme Homekraft, Noida Extension
ATS Group has made a foray into the affordable housing segment by launching a new entity ‘HomeKraft’ and is eyeing Rs 4,000-5,000 crore under this business in the next 3-5 years.
While ATS will continue to focus primarily on boutique and premium housing, HomeKraft would exclusively cater to the housing needs of affordable and mid-income housing groups, the company said in a statement.
To begin with, the company is looking at developing projects in the NCR with apartments ranging between Rs 30-70 lakhs. We will then move on to the rest of the country. We are looking to block sales of 6000-6500 units in the next 3-5 years with expected revenue in the range of Rs 4000-5000 crore, the HomeKraft chief executive officer said.
The company will invest close to Rs 1,500-2,000 crore for construction of these units and will fund it with a mix of internal accruals, debt and private equity funds.
ATS is already in advance talks with a major private equity firm to raise funds for HomeKraft in the next 2-3 months, he said, adding HomeKraft aspires to be one of top five developers of the country in the next 3-5 years.
Commenting on the development, ATS Group Chairman and Managing Director said there was a persistent demand from the customers for affordable and mid-segment housing.
Currently, ATS has a portfolio of 30 million sq ft of residential space delivered and 40 million sq ft underway.
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