Parsvnath to build township at Gurgaon-Sohna rd for Rs 1,100cr
Parsvnath Developers will invest Rs 1,100 crore over the next four years to develop a large, integrated township on Gurgaon-Sohna road.
New Delhi: Parsvnath Developers will invest Rs 1,100 crore over the next four years to develop a large, integrated township on Gurgaon-Sohna road.
The national capital-based realty firm will launch the 107-acre township early next year and is eyeing a revenue of Rs 2,700 crore over the four year period.
Parsvnath expects to get the approvals soon for the project.
"We have a land parcel of 107 acre on Gurgaon-Sohna road. As per the new master plan of Sohna, this land has been notified as residential zone. So, we have decided to develop an integrated township on this land," Parsvnath Chairman Pradeep Jain told PTI.
The company will develop 2 million sq ft each of group housing and independent floors. About 1 million sq ft will be plotted development, he added.
Asked about the investments involved, Jain said "it would be about Rs 1,100 crore excluding land cost" and funded through internal accruals as well as advances from customers.
Parsvnath is banking on this township along with two commercial projects in the national capital to become a debt free company by end of 2014-15 fiscal. It had debt of around Rs 1,300 crore as on September 30.
"We will be debt free by March 2015," Jain said.
The cash-flows generated from this township and two commercial projects at Gole market and KG Marg in Delhi would be sufficient to clear the debt, he said.
Parsvnath has completed the construction of commercial tower, having 2.84 lakh sq ft area, at Bhai Veer Singh Marg in Gole Market and the leasing process would start soon. It has started the construction of another commercial building, with 1.3 lakh sq ft area, at KG Marg near Connaught Place.
Recently, Parsvnath announced plans to monetise non-core land parcel in South-West India either through joint ventures with local builders or outright sale of plots.
Parsvnath has 85 acres in Kochi, of which 50 percent has already been notified as Special Economic Zone and process for the next half is in progress. It has 35 acres in Chennai and 75 acre in Mysore.
The company reported 30 percent fall in consolidated net profit at Rs 12.51 crore for the second quarter of this fiscal due to higher outgo on tax. It had posted a net profit of Rs 17.93 crore in the year-ago period.
Total income from operations rose by 8.5 percent to Rs 162.46 crore during July-September period of 2013-14, from Rs 149.65 crore in the corresponding period of last fiscal.
Parsvnath is currently working on 50 projects with a total area of 75.7 million sq ft. Its business portfolio includes residential, commercial (office and retail), DMRC Projects, Hotels, SEZs and IT Parks.