New Delhi: Making its foray into the property market of southern India, real estate firm Omaxe will invest up to Rs500 crore in the next 2-3 years to develop a residential project at Vishakhapatnam in Andhra Pradesh.
The national capital-based Omaxe has bagged a land deal on 1 November for 19.53 acres for about Rs100 crore with Vishakhapatnam Urban Development Authority (VUDA).
“We will invest up to Rs500 crore for the entire project, for which the land at Madhurwada has already been acquired,” Omaxe CEO (corporate strategy and finance) Arvind Parakh said.
The company expects a realisation between Rs900-1,100 crore from this project, which has a saleable area of 30 million sq ft, Parakh said.
“It will be a mid-income housing project with an average saleable amount of Rs3,000 per sq ft,” he said, adding the construction work would start in the next 2-3 months and be completed within 2-3 years. The project would constitute 1,500 -2,000 housing units.
On funding of the project, Parakh said it would be supported by internal accruals and sale of apartments. Besides, the company is also scouting for different projects in other southern states as well. Parakh said: “We are looking for projects in Bangalore, Pune and Hyderabad and talks are on. But nothing has been finalised yet.”