New Delhi: City-based real estate developerAnsal Properties and Infrastructure Ltd said on Thursday that it will invest Rs400-500 crore in the next 18 months to build 10,000 affordable homes in Uttar Pradesh and Rajasthan.
The affordable houses in cities such as Lucknow, Ajmer, Jaipur and Jodhpur will be part of townships that the company is developing.
Affordable dreams: Ansal Properties’ Pranav Ansal. Ramesh Pathania / Mint
The investment will be funded through internal accruals and advance against sales, said vice-chairman and managing director Pranav Ansal. “We already have the land in our possession and all the approvals to develop the project,” he said.
The houses will be between 200 sq. ft and 900 sq. ft and priced at Rs2.5-9.5 lakh. They will be ready for delivery in a year and a half. Ansal has sold 2,000 such residences since November and plans to sell 10,000 by the end of this year. It expects to earn a margin of 20% on these houses. “The construction cost of these houses is between Rs450 and Rs600 per sq. ft,” Pranav Ansal said.
In the next two years, the company would need Rs1,500 crore to fund various projects such as special economic zones, residential and commercial projects, he said. “We plan to raise this money through internal accruals and debt. Out of this amount, we will raise Rs100-200 crore from debt.”
The company has a debt of about Rs1,000 crore, out of which Rs20-30 crore is due for repayment by March .
Given the slowdown in realty, the company has also put its hospitality venture on hold. It had planned to build 30 four- and five-star hotels in the next 10 years. In 2007, the company floated a 80:20 special purpose vehicle along with hotelierVipin Luthra-owned Ambience Hospitality Management to build the hotels. They were to jointly invest around Rs2,000 crore in the venture.
“The hospitality industry has slowed down, so we will not be launching any hotels now,” Ansal said. “We will decide if we want to build hotels after a year.”