Adani Realty to Invest Rs5000cr in Upcoming Township Project at Ahmedabad
Adani Realty Business, the real estate arm of the Adani Group, plans to invest Rs5,000 crore in the group’s upcoming township in Ahmedabad. The total investment is expected to be sale-revenue funded, without any debt. The group is developing a 600 acre township named Shantigram in Ahmedabad in a phased manner. Out of the Rs5,000 crore investment, more than Rs3,000 crore is the value of the land, which is owned by the Adani family.
The payment for this land, which has been transferred to a new wholly owned special purpose vehicle (SPV), will be made in a staggered manner over the next three to four years. The remaining Rs2,000 crore is the development cost, of which more than Rs700 crore has already been infused. The company is confident to funding the project as well as paying the total land value through sale-revenue generated over a period of time.
The Phase I of the project, which has already started, will be completed by August 2014. This includes two housing units, of which one will be in the middle segment and the other in the luxury space. The company has already sold 1,000 apartments in the mid-segment after a soft launch in November.
In Phase I, the flats are priced between Rs32 lakh to Rs2.5 crore each. The project will include a total development of 40 million sq ft, of which 2.8 million sq ft will be constructed in the ongoing fiscal. The township will include residential, commercial, hospitality, healthcare, and entertainment facilities.
“Nearly Rs600 crore worth of apartments have already been sold and it is expected that before the end of this financial year another 2,000 apartments/villas will be sold, which will generate additional sales revenue of about Rs1,200 crore,” a company spokesperson said.