Wadhwa eyes Rs 4k-cr revenue from Navi Mumbai project
July 10, 2018
The Wadhwa Group on Friday said it is eyeing Rs 4,000 crore in revenue from its integrated township project in the Navi Mumbai Airport Notified Influence Area (NAINA). The project is spread over 138 acres and focuses on affordable housing. It will jointly be developed with Bahrain-based Gulf Finance House (GFH).
The project, with a total of 10,000 housing units, would be built in two phases, with approximately 5,000 units to be launched in the first phase. Of the total, 1,000 units will be handed over to the City and Industrial Development Corporation, which will make them available to economically weaker sections of the society. The project is being developed under the Pradhan Mantri Awas Yojana (Urban) scheme, under which first-time home buyers are eligible for a subsidy of Rs 2.6 lakh.
Vrushank Mehta, VP of Wadhwa Group, said the company’s immediate requirement towards construction costs in the next two-three years is about Rs 1,300 crore. Of this, PNB Housing Finance has already sanctioned `650 crore. Piramal Housing Finance has committed Rs 250 core.
The remaining capital required in the initial phase will be funded through internal accruals. In the next two-three months, we will also approach private equity funds that are focused on affordable housing to invest in the project,” Mehta said.
One has to shell out Rs 8,600 per square feet for a studio-sized apartment and Rs 9,100 per square feet for a two-bedroom flat.
Wadhwa plans to develop 10,000 affordable housing units by 2022. After that, it may shift to bungalows and villa-style houses. The company has 450 acre in its possession, which it acquired from GFH.
A Bloomberg report in 2011 said GFH had spent $1 billion in buying 1,250 acre and getting permits and clearances, as it planned to develop a 400-acre integrated logistics site. In 2007, GFH had announced plans to also set up Energy City Navi Mumbai and Mumbai IT & Telecom City near Panvel.
However, these projects failed to take off. Subsequently, GFH tied up with Wadhwa Group to build a township.