Assotech to raise Rs 75 cr; sells 49% stake in Gurgaon project

NEW DELHI: Real estate developer Assotech today said it will raise Rs 75 crore from private equity firm Sun-Apollo India Real Estate Fund by selling 49 per cent stake in a housing project in Gurgaon.

"We will divest 49 per cent stake in a project to Sun-Apollo to raise Rs 75 crore. This investment is only for a specific group housing project in Gurgaon," Assotech Managing Director Sanjeev Srivastava told PTI.

The National Capital Region-based company is developing the project -- Assotech Blith -- in a 12-acre land, he added.

"We have acquired the land for Rs 152 crore, out of which Rs 75 crore will be coming from Sun-Apollo for the acquired stake," Srivastava said.

He said the total estimated project cost of 'Assotech Blith' is around Rs 500 crore.

The money coming from Sun-Apollo will be a foreign direct investment to the project.

"This FDI for our project in NCR will allow us to enter highly respected and profitable real estate market in Haryana," Srivastava said.

Assotech is currently executing projects worth Rs 3,300 crore in the NCR, Uttar Pradesh, Uttarakhand, Odisha, Bihar, Jharkhand and Madhya Pradesh.

Sun-Apollo is a USD 630 million real estate PE fund, which is dedicated to India. The investors of the fund include the US, European and Middle Eastern institutional investors, multilateral agencies and high net worth individuals.