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Mantri Realty plans Rs4,300 cr projects

Mantri Realty plans Rs4,300 cr projects
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First Published: Thu, Mar 15 2007. 02 09 AM IST
Updated: Thu, Mar 15 2007. 02 09 AM IST
Mantri Realty, part of the Mumbai-based Mantri Group, has unveiled investment plans involving a capital outlay of Rs4,300 crore over the next three to four years in seven Indian cities.
The seven cities include Mumbai, Pune, Bangalore, Hyderabad, Goa, Sholapur and Kolhapur.
The company is adopting a project partnership model to bring in equity partners for each project, which will typically have 25% equity component and 75% debt financing. The company expects to complete most of theprojects by 2010-11, said Mantri Realty chairman Sunil Mantri.
“The shift in focus of Mantri Realty from tier-I to tier-II and tier-III cities is in line with what was projected for the Indian real-estate industry.
With lack of availability of land coupled with rising land costs in tier-I cities, the Indian realty companies with overseas funds support will increasingly shift their focus to tier-II and tier-III cities keeping in view the cost advantages,” said Ganesh Raj, partner and national director, Ernst & Young.
Mantri Realty said it has lined up some overseas partners as well for the projects. “We have already tied-up with US-based Liberty Financing Co. for $100 million (Rs440 crore)...,” Mantri said.
The group has also signed a preliminary agreement with another US company for $125 million for the two residential township projects in Mumbai and Pune, he said, but declined to name the company pending a formal announcement.
The group is also negotiating with several medium sized funds for amounts ranging from $10 million to $100 million for other projects.
In Hyderabad alone, the company is investing Rs800 crore on three residential complexes, a mall and an IT Park providing 12 million sq ft of built-up area with a potential sale value of Rs2,500 crore, according to Mantri.
The other projects envisaged include residential complexes coupled with commercial space in Mumbai (seven lakh sq ft), Pune (12 lakh sq ft) and Bangalore (six lakh sq ft), residential townships in Mumbai (10 million sq ft) and Pune (10 million sq ft), hotels and service apartments in seven cities, IT special economic zones in Nagpur and Sholapur, and IT parks in Lathur, Nanded, Kolhapur and Sangli.
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First Published: Thu, Mar 15 2007. 02 09 AM IST
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