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Ambuja Realty Plans Rs 5,000 crore Projects

By ugesh sarkar, Section Real Estate
Posted on Thu Jun 11, 2009 at 02:31:24 AM EST

Kolkata-based real estate company Ambuja Realty has announced plans to invest Rs 5,000 crore in a host of projects including healthcare and hospitality over the next four to five years. The company would roll out the projects in three states -- Punjab, Chhattisgarh and West Bengal, said Harshvardhan Neotia, chairman, Ambuja Realty.

The company plans to raise the money partly through debt and equity and also through sale of some existing properties. "About Rs 1,000 crore would be raised by selling some existing properties," Neotia added.

The value of the projects would involve both cost of land and construction. "We have already acquired about 60 per cent of the land required for the projects," said Neotia.

The economic downturn had forced the company to reassess its target against the backdrop of a severe liquidity crunch. "Last year, the target was obviously higher because the real estate market was growing. But since then, targets had to be revised due to the crisis," Neotia said.

The company had to delay some of its projects as well. "All projects need to be structured for longer periods. If we were pushing to open a mall in a year, now it is two years," Neotia said.

Source: Realty Plus Ambuja Realty plans Rs 5,000 crore projects

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Neotia, however, did not wish to divulge names of specific projects that have fallen behind schedule. Despite the slowdown, there are some signs of the market picking up momentum. "Over the past three months, the residential side of real estate has picked up and people are optimistic that the worst is behind them," said Neotia.

Earlier this month, the real estate company signed a joint venture (JV) agreement with Advance India Projects (AIPL), a New-Delhi based infrastructure company, and Infrastructure Leasing Financial Services (IL&FS) for developing township projects in north India.

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