Ashiana Homes-Landcraft to invest Rs 650 crore on housing project

NEW DELHI: Realty firms Ashiana Homes and Landcraft Projects will jointly invest about Rs 650 crore over the next five years to develop a housing project in Gurgaon.

Ashiana Homes and Landcraft have formed an equal joint venture to develop the 14-acre housing project, comprising 750 apartments, located on Dwarka Expressway.

To fund this project, the JV firm Ashiana Landcraft Realty has already raised Rs 180 crore from Pirmal Group private equity firm Indiareit and financial institution India Infoline.

"We are coming up with a premium housing project on Dwarka Expressway. The construction of first phase comprising 450 units have started and the second phase would be launched next year," Ashiana Homes Director Rohit Raj Modi said.

Asked about investment, he said the total project cost would be about Rs 650 crore including investment on land, which the joint venture firm had bought from another realty firm Vatika group.

"We have already raised Rs 180 crore for this project in a structured deal. The remaining investment would be funded from advances against sales and construction financing from HDFC Ltd," Modi said.

The JV is expecting a sales realisation of about Rs 1,000 crore from this project 'Center Court' over the next five years, he added.

The first phase would be delivered by mid-2017 and the entire project would get completed by 2019. At present, the company is selling the flats at a basic selling price of Rs 6,500 per sq ft.

Delhi-based Ashiana Homes is developing projects in the national capital region, Jaipur and Bhubaneshwar. Ghaziabad- based Landcraft Projects is building a 90-acre township and a group housing projects in the city.