New Delhi: Realty firm Supertech has raised Rs. 350 crore from L&T Finance to fund an ongoing housing project in Greater Noida. The Noida-based firm also plans to launch next month a sports-centric housing project in Noida Extension (Greater Noida – West) where it would develop over 4,500 flats/villas at a cost of Rs. 1,100 crore. “We have raised Rs. 350 crore from L&T Finance for our Eco Village-I project at Noida Extension,” Supertech managing director Mohit Arora told news agency Press Trust of India.
The company is developing 7,500 flats in this project, he added.
Supertech chairman R K Arora said the money raised is in the form of debt.
The company has already delivered 2,000 flats in the Eco Village-I project and the funds will be utilised towards completing the remaining 5,500 apartments, he added.
In view of the slowdown in the property market, real estate developers are raising funds from private equity players and other financial institutions to complete their projects.
Supertech has two more projects in Noida Extension, Eco Village II and Eco Village III comprising 7,500 and 5,000 apartments, respectively. In these three projects, the company is developing around 20,000 flats, of which 16,000 units have been already sold.
Managing director Mohit Arora said the company is focusing on delivery of existing projects and has targeted to complete 10,000 flats annually for the next 4-5 years. He said the company has delivered 20,000 units in the last three financial years.
On sales, he said the company expects bookings to bounce back this year on the back of increased demand for affordable homes in the Delhi-NCR market after many incentives announced by the government for low-cost homes.
Its sales had fallen to about Rs. 1,500 crore last fiscal year from around Rs. 3,000 crore in the previous year.
Supertech has projects in Noida, Greater Noida, Ghaziabad, Gurugram, Meerut, Muradabad, Dehradun, Haridwar, Rudrapur and Bengaluru.
L&T Finance is the financial services arm of engineering major L&T.