Uppal Housing plans Rs1,500 cr investment to expand operations

Uppal Housing plans Rs1,500 cr investment to expand operations
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First Published: Wed, Sep 12 2007. 01 15 AM IST

Uppal is in talks with foreign investors to jointly develop a multiservice SEZ in Gurgaon
Uppal is in talks with foreign investors to jointly develop a multiservice SEZ in Gurgaon
Updated: Wed, Sep 12 2007. 01 15 AM IST
New Delhi: Real estate developer Uppal Housing Ltd said it will invest about Rs1,500 crore by March to expand its operations outside the Capital and its suburbs. The company is also considering a share sale in the near future.
Uppal, primarily a Delhi-based developer, plans to expand into Mumbai, Pune, Hyderabad and tier II or smaller cities such as Chandigarh. “We have always been a Delhi-focused company,” Gian Bansal, Uppal director and chief executive officer (infrastructure), said. “But we now want to have a wider presence.”
Uppal is in talks with foreign investors to jointly develop a multiservice SEZ in Gurgaon
Real estate developers such as DLF Ltd, Unitech Ltd, and Parsvnath Developers Ltd are increasingly expanding their presence outside Delhi and its suburbs as real estate demand slows down in Delhi and its suburbs such as Gurgaon and Noida as real estate demand slows down in these areas.
Uppal plans to raise funds for its expansion through internal accruals and project-level private equity investments. Uppal is also looking at an initial public offer. “It is something we will do eventually...once we build the company’s valuation, we will look at diluting stake,” Bansal said.
The company is bringing in shareholders in project-specific special purpose vehicles, Bansal said. In June this year, Uppal which had formed a special purpose vehicle with Luxor Group for the development of a 67-acre special economic zone (SEZ) in Gurgaon diluted its stake in the SPV to Trinity Capital, a US-based boutique investment banking firm, for over Rs300 crore.
The company is now in talks with foreign investors to jointly develop its multiservice SEZ at Gurgaon. “The 263-acre zone will require an investment over Rs5,000 crore in five years,” Bansal said. “We will dilute our stake in the special purpose vehicle to raise funds.”
Uppal has received approvals for both the SEZs. Work on the multiservice zone will start in December, Bansal said.
Uppal will be developing three more SEZs. Land acquisition for the zones has been completed.
Uppal also plans to expand its hospitality and retail business by building five more hotels and three malls in Delhi and its suburbs.
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First Published: Wed, Sep 12 2007. 01 15 AM IST