The premium housing project will be developed at an investment of about Rs 1,000 crore.
New Delhi: Adani Group's real estate venture Adani Realty on Wednesday announced its tie up with Delhi-based M2K Group to develop a premium housing project in Gurgaon at an investment of about Rs 1,000 crore.
Adani Group, a nearly USD 8 billion company primarily engaged in power, coal and logistics businesses, has formed an equal joint venture with M2K to develop the project 'Oyster Grande' spread over 40 acre in Gurgaon near Dwarka Expressway.
"We have projects in Ahmedabad, Mumbai and Kochi. Now we are foraying into the NCR market as it is an important region in the country. Dwarka Expressway is an upcoming destination," Adani Advisory LLP CEO Ameet Desai told reporters here.
Asked about the investment on this project, he said it would be about Rs 1,000 crore including both the phases. The proposed investment would be met through internal accruals, debt and advances from customers.
Giving details about the project, M2K President Vikash Bhagchandka said the JV company is launching 756 flats in the first phase and there would be about 1,500-2,000 units in the entire projects.
"We are launching this project at Rs 6,300/sq ft, which is very competitive considering the quality and specification we are providing," Desai said. The size of the units varies from about 1,600 sq ft to over 7,000 sq ft. The cost of each flat would be in range of about Rs 1-4.5 crore.
On the overall realty business, Desai said the venture is currently contributing less than 5 percent to the total group turnover.
"We are in build-up phase. We are developing various projects. The revenue would start coming after 2-3 years but still it would be lower than the other business," Desai said, adding the group is committed to long-term investment in this sector.
At present, Adani Realty is developing about 50 million sq ft with an investment of about Rs 3,500 crore. These projects would be completed in the next 5-7 years. The 600- acre integrated township at Ahmedabad is its major project.
Desai said the company is targeting pan-India presence in the next five years and "we are evaluating several proposals in various cities across the country".
Adani Realty is not averse to developing projects in tie-up with other developers as well as land-owners, he said, while ruling out any plan to raise funds via private equity to meet proposed investment on developing projects.
Besides real estate, M2K Group is into multiplexes, bio-technology, aviation and bio-technology businesses. It is currently developing more than 10 million sq ft.