New Delhi: Wave Group on Wednesday said it will invest Rs 500 crore to develop an affordable housing project at Ghaziabad with flats in a price range of Rs 14-18 lakh.
The group's realty firm Wave Infratech would develop about 3,500 flats in the first phase of the project, which is part of a 4,500-acre integrated township. The group is also engaged in liquor, sugar, multiplex and cinema businesses.
"We are entering into affordable housing segment for the balance development of our integrated township at Ghaziabad. We have earmarked 25 acre for this purpose," Wave Group's new Managing Director Rajendrakumar Panpalia said.
Panpalia said the demand of affordable homes would rise following the Budget announcement of increasing the interest deduction limit on home loans up to Rs 25 lakh for the first home buyers to Rs 2.5 lakh from Rs 1.5 lakh.
"We will develop 3,500 flats in the first phase. We will be selling flats in a price range of Rs 14-18 lakh," he added.
The size of the units varies from 575-800 sq feet. The first phase would be completed in the next 3-4 years.
Asked about funding of investment, he said it would be through internal accruals and bank debt.
Panpalia said that the company has so far acquired about 3,200 acres out of proposed 4,500 acre township.
Besides township at Ghaziabad, Wave Infratech is also developing 152-acre project in Noida on the land it had won through an auction for about Rs 6,500 crore. It has project in Mohali as well.
Asked whether real estate business witnessed any adverse impact after the death of promoter Ponty Chadha, Panpalia said the "sales were affected for a week but after that it was normal".
"The company is being run professionally and construction at all our projects are undergoing," he said.
Ponty and his brother Hardeep were killed in a shootout at their Chattarpur farmhouse on November 17.
First Published: Thursday, March 14, 2013, 00:03