Brick Eagle buys low-cost housing project for Rs 300 crore

MUMBAI: Private equity player Brick Eagle has invested Rs 300 crore to acquire Tanaji Malusare City (TMC), a stalled low-cost housing project in Karjat near here.

TMC, located about 100km from here in Raigad district, was the first affordable housing project in the private sector and was awarded by the United Nations for sustainable practices in 2009.

"It has been our strategy to invest in affordable housing segment and this acquisition is in line with our plans. We have invested Rs 300 crore for acquiring the project," Brick Eagle Founder and CEO Rajesh Krishnan told reporters here today.

Due to a shareholder dispute and a court injunction, the project, an initiative of Mumbai-based Matheran Realty, was delayed by five years leaving over 3,600 house buyers in the lurch. Matheran Realty had given contract to Sterling Construction Systems to build the project.

"Now that we have acquired the project, our priority will be to complete the construction as soon as possible and deliver these units within 24 months. We have roped in well- known architect Hafeez Contractor to redesign the entire project," he said.

The township, spread across 105 acres, will house 20,000 families and have commercial developments along with schools and hospitals, among other facilities.

The project will now be developed by Sheltrex, an incubated developer of Brick Eagle Group.

"Sheltrex townships embrace technology to bring convenience and a quality lifestyle, not usually associated with affordability. With TMC revived as Sheltrex, we have a stronger offering for customers, old and new, with a range of amenities in a smart township," Sheltrex Developers Chief Executive Goutham Pulimi said.

The company hopes to deliver at least 500 keys in April, he said.

Hong Kong-headquartered Brick Eagle has so far invested in 20 housing projects spanning 1,250 acres in Mumbai, Pune, Chennai, Coimbatore, Mysore and Ahmedabad.
"While affordable housing has always been seen as a pressing social need, Brick Eagle views this as a $ 100 billion market opportunity," Krishnan added.