New Delhi December 11, 2013: Delhi-based realty players Ashiana Homes and Landcraft Projects have forged a 50:50 joint venture to execute a Rs 600-crore residential project in Gurgaon.
Ashiana had recently received Rs 180 crore funding from two private equity players — Indareit Domestic fund and IIFL — for the project. The balance will be funded through a mix of debt and equity. The amount to be invested by Landcraft was not known. The 14-acre project will have 750 units.
Rohit Raj Modi, Director Ashiana Landcraft Realty, said the company hopes to achieve a total sales realisation of Rs 1,000 crore from the project.
A recent report by Cushman & Wakefield’s on private equity investments in real estate revealed that the total value of announced private equity transactions in the real estate sector for the first three quarters of 2013 were recorded at Rs 4,716 crore, witnessing an increase of 26 per cent compared to the first three quarters of 2012 (Rs 3,750 crore).
This was despite the slow pace of growth in the Indian real estate sector with net absorption in offices down by 15 per cent and vacancies increasing, subdued residential sales, in part due to slower GDP growth, inflationary pressure, volatility in forex and stock markets upcoming elections and policy impact.