New Delhi: Ansal Properties and Infrastructure is set to sign a private equity deal to raise Rs700 million for one of its residential projects, a top official said on Friday.
“We are signing private equity in a project. The deal is at the signing stage,” vice chairman and managing director Pranav Ansal told Reuters in an interview. He said the deal will be signed this month without giving further details.
The Delhi-based realty firm had said in June that it planned to raise up to Rs1,500 crore through sale of shares to institutions, taking cue from peers such as Unitech and Indiabulls Real Estates.
However, Ansal Properties has now deferred the plan as sales and prices have recovered from their downturn troughs.
“We have strong cashflow... I’m going to get so much surplus in the next two years. We aren’t looking at any QIP as of today.”
“The (real estate) sector has now bounced back totally. Residential prices are now higher than they have ever been in Delhi and NCR,” or the national capital region, Ansal said.
The company has raised prices of most residential projects between 10-35% in the national capital region, Lucknow, Mohali and Jaipur.
“Our focus still remains mid-segment housing, which we are doing very aggressively,” Ansal said, adding that the company has been able to reduce cost at some of its ‘affordable´ projects by 10-15%.
Cashflow from SEZ, township
The developer is banking on 112-acre Gurgaon township and 252-acre agro and food processing special economic zone (SEZ) in Haryana to drive its cashflow for the next six to seven quarters.
The firm has spent Rs150 crore for land acquisition and will invest Rs300-400 million for the development of SEZ that will be operational in 18 months, Ansal said.
The Gurgaon project is expected to turn in a revenue of Rs1000 crore in two years, while the SEZ will likely bring in Rs550-600 crore in 18 months, Ansal said.
The company has a debt-equity ratio of 1 and a total outstanding debt of Rs1,100 crore, Ansal said.
Shares in Ansal Properties ended down 2.5% at Rs81.10 in a weak Mumbai market.