Fashion apparel company Bhartiya International raises 700 cr for realty project

BANGALORE: Fashion apparel company Bhartiya International has raised 700 crore in debt for a 125-acre mixed-use project in Bangalore, marking its entry into the real estate business.

The firm has raised the debt from a consortium of banks that includes Corporation Bank, Allahabad Bank, Bank of Baroda, State Bank of Patiala and Andhra Bank. The debt will fund the first phase of the project under which 900 residential units will be constructed.

"The entire project will require close to $2 billion investment," said Snehdeep Aggarwal, founder chairman of Bhartiya International. "This will be spread over 8-10 years. The total built-up area is envisaged at 17 million sq feet."

The first phase will have houses spread over 500 sq ft to 1,950 sq ft and will be priced between 29 lakh and 1.5 crore. The project will have a total of 2,400 residential units. It is expected to be completed by 2016.

"The residential units are expected to bring in $1-1.5 billion in revenue over the next eight years, which would be ploughed back for creating income yielding retail, commercial and hospitality assets," Aggarwal said.

The proposed development will be a self-contained city. Besides houses, it will have souks, high-street retail and shopping malls, a five-star hotel, a business and financial district, an IT campus, a school and a hospital. The Delhi-based firm has signed a memorandum of understanding with Leela Venture, which will manage the five-star hotel in the project.