Vipul's Rs. 6,500-Crore Realty Projects by Property Vertical

Indian Real Estate: Continues To Attract High Profile Investment

The next 3-4 years will see Gurgaon-based realty firm, Vipul invest about Rs. 6,500-crore in the development of various residential, commercial, hotel and SEZ real estate projects across the country, from NCR, Punjab, Kolkata to Nagpur.

Already, the realty firm has received in-principal approval to develop a 150-acre SEZ in Gurgaon, as it awaits the final approval, which is expected within the next two months. Besides, the government has allotted Vipul, 70-acres of land in Nagpur for developing another SEZ. Investment in both SEZs is expected to total Rs. 3,600-crore, including land cost.

To fund the projects, Vipul has floated a separate SPV for SEZ development, with real estate venture fund Solitaire Capital, Singapore and US-based Banyan Tree picking up a 48% stake in the SEZ project.

As for source funding of the Rs. 6,500 crore investments, Vipul intends to take Rs. 1,000-1,500-crore loans for the SEZs, but investment for the other projects will be met through internal accruals and customer advances. As for Vipul's other projects, they include the development of an integrated township spread over 130-acres in Ludhiana, which will comprise of plots, villas, hotel, commercial space and group housing, in association with Solitaire Capital.

In Gurgaon, the company will be constructing 290 high- end villas spread over 50-acres of land, while in Amritsar; it will be developing a hotel-cum-mall in an area of 2.7-lakh sq. ft. This while, the company has by now started the construction of an IT park in Kolkata covering 7-lakh sq. ft, with the construction of another IT park covering 1-million sq. ft. on Gurgaon-Sohna Road beginning in October.

The development and construction of two commercial projects on the Gurgaon-Sohna road covering 6.5-lakh sq. ft. is scheduled to begin two months, from now. Besides, the company will also be starting the second phase of the built-to-suit office space in Gurgaon, covering 5-lakh sq. ft., which is being developed for Dell, only the world's largest PC maker. The first phase comprising of 2.9-lakh sq. ft. will be ready for handing over in October.

The projected turnover of all these projects to be completed in the next 3-4 years, will total to about Rs. 9,000-10 ,000-crore, and, while Vipul's turnover standing at Rs. 140-crore today, is expected to touch Rs. 225-crore in the current fiscal.

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