House of Pearl forays into real estate
Diversifying into real estate sector, apparel firm House of Pearl Fashions has partnered with developer Ansal API for construction of a commercial complex in Gurgaon.
By PTI |
NEW DELHI: Diversifying into real estate sector, apparel firm House of Pearl Fashions has partnered with developer Ansal API for construction of a commercial complex in Gurgaon.
House of Pearl Fashions expects revenue in the range of Rs 500 crore through the sale of developed property.
The 9.26 acre plot on National Highway-8 in Narsinghpur Gurgaon is owned by Pearl Global Ltd, a subsidiary of House of Pearl Fashions. The company has entered into a MoU with Ansal API, as per which Ansal would obtain necessary government approval and construct the property.
"We would be developing a commercial space, which would be utilised for office and retail purposes. There would be an option of leasing out part of the complex, while part of it would be open for outright sale," House of Pearl Fashions CFO Rishi Vig told media.
Revenues from sale of developed property would be shared between Pearl Global and Ansal API in the ratio of 47.5: 52.5. Depending upon government approvals, the developed area would be in excess of 6 lakh sq ft and revenues would start flowing within 3-4 years from date, Vig said.
"Once the property is developed and ready for sale, we expect revenues to be in the range of Rs 500 crore, but it could vary keeping in mind the construction costs and real estate prices prevalent 3-4 years down the line, when the property is constructed," he added.
"Our core business is apparels and we would continue to focus on it. Ansal has expertise in the real estate business and that is why we have partnered with them. As of now we have no plans to get into the real estate business but may look into it depending on how this pilot project shapes up," Vig said.
House of Pearl Fashions expects revenue in the range of Rs 500 crore through the sale of developed property.
The 9.26 acre plot on National Highway-8 in Narsinghpur Gurgaon is owned by Pearl Global Ltd, a subsidiary of House of Pearl Fashions. The company has entered into a MoU with Ansal API, as per which Ansal would obtain necessary government approval and construct the property.
"We would be developing a commercial space, which would be utilised for office and retail purposes. There would be an option of leasing out part of the complex, while part of it would be open for outright sale," House of Pearl Fashions CFO Rishi Vig told media.
Revenues from sale of developed property would be shared between Pearl Global and Ansal API in the ratio of 47.5: 52.5. Depending upon government approvals, the developed area would be in excess of 6 lakh sq ft and revenues would start flowing within 3-4 years from date, Vig said.
"Once the property is developed and ready for sale, we expect revenues to be in the range of Rs 500 crore, but it could vary keeping in mind the construction costs and real estate prices prevalent 3-4 years down the line, when the property is constructed," he added.
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"Our core business is apparels and we would continue to focus on it. Ansal has expertise in the real estate business and that is why we have partnered with them. As of now we have no plans to get into the real estate business but may look into it depending on how this pilot project shapes up," Vig said.
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