Mumbai: Apparel retailer Provogue India Ltd plans to complete 12 real estate development projects across India in the next five years, a top official said.
The projects involve setting up malls and shopping centres across tier 2 cities like Aurangabad, Indore, Nagpur and Jaipur and the first project is set for completion by mid next year, managing director Nikhil Chaturvedi said at an analyst meet on Monday.
“The first centre at Aurangabad would be up by the middle of next year. Subsequently every three-six months we would have a centre coming up”, he said.
The total funding requirement for all 12 centres would be about Rs48 billion, out of which about Rs16 billion would be equity and Rs32 billion debt, Chaturvedi said.
Provogue’s debt requirement is being syndicated on a project-by-project basis. It has about Rs12.5 billion funding under equity, he said.
As soon as the Aurangabad centre is up it would give the company additional cash flow of more than 5 billion rupees, which it would use in further investments, he said.
“We just need to make sure our first two projects come up on time. We will not need any more money after that,” Chaturvedi said.
Earlier this year, Provogue had sold 27% stake in a unit of real estate arm Prozone Enterprises Pvt Ltd for Rs4.57 billion. Prozone is a joint venture between Provogue and Liberty International Plc.
Provogue owns about 75% stake in the joint venture. Its shares closed up 3.37% at Rs1,240 on Monday in the Mumbai market.