Arvind Smartspaces To Launch Affordable Housing Project In Ahmedabad
Arvind Smartspaces will invest Rs 200 crore during this fiscal to buy land in the Ahmedabad and Bengaluru.
Talking about fundraising plans, managing director and chief executive officer of Arvind Smartspaces said, we are a little conservative on the debt side. We don’t want to raise debt. But on the equity side, promoters have been infusing funds. In the last couple of years, there have already been a couple of rounds of preferential issues. Last round was in February, of about Rs 55-60 crore.
However, during the ongoing fiscal, the developer is considering fund-raising options such as private equity, project-level divestment so that it can invest around Rs 200 crore in new land parcels. Two-thirds of this investment would be in Bengaluru, while the balance for future projects in Ahmedabad.
The company is also likely to launch its maiden housing project in Pune by the end of this year and next fiscal, it may also foray into Hyderabad’s residential market. If things go as planned, the realtor plans to launch the project in Pune’s Kothrud area by December.
When asked about plans for tier-1 cities, he said the company is not planning to enter any new tier-I cities. In Ahmedabad, Arvind Smartspaces has recently closed a land deal and intends to launch a housing project in a month’s timeframe.
Similarly, it is looking at launching a mid-segment residential project over five acres in Bengaluru, where it had acquired a land parcel for around Rs 60 crore.
It also has plans to come up with an affordable housing project of around 1,200 units at Ahmedabad’s Naroda Road. The project will have 1.2 million square feet and with the pricing of each residential unit being in the range of Rs 20-25 lakh.
The firm is considering fundraising options like project-level divestment, PE so that it can invest around Rs 200 crore in new land parcels.
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