New Delhi: Realty major Emaar India plans to raise up to Rs1,000 crore debt to meet construction expenses as it targets to complete all the ongoing 50 projects over the next two years.
The company has already raised Rs2,500 crore debt in last one year, of which about Rs1,500 crore was used to replace costlier debt. In April last year, Dubai-based Emaar Properties decided to end the 11-year-old India JV with MGF Development through demerger process. Since then, Emaar India is focusing on execution of ongoing projects.
The Dubai property major entered the Indian real estate market in 2005 and has invested Rs8,500 crore through the joint venture firm Emaar MGF Land. According to people aware of the development, Emaar India is looking to raise Rs800-1,000 crore more debt to fund its projects. The company currently has a debt of about Rs5,000 crore.
When contacted, the company spokesperson declined to comment.
Earlier this month, Emaar India CEO Sanjay Malhotra had said that the company is focusing on delivery and will invest Rs1,000 crore each in next two years to complete all its ongoing projects. “Our focus in on delivery. We are putting in place all components required to complete our ongoing projects. We have increased the number of labourers on sites to over 10,000 from 1,000 a year ago,” he had said.
The company has about 50 ongoing projects in Gurgaon, Jaipur, Lucknow, Mohali and Chennai comprising about 10,000 housing units. Emaar India has got completion certificates for 2,000 apartments since July last year and these units are being handed over to the customers. The company has brought in a new project management team to expedite projects. The uncertainty over the JV delayed execution of projects.
The company has unsold stock of about Rs600-700 crore, mostly on Dwarka Expressway in Gurgaon. The demerger is expected to be completed this year. Both the partners—Emaar Properties and India’s MGF Development—have divided projects and land parcels among themselves. Emaar India has a land bank of 6,000 acres for future developments.