Parsvnath to cut debt to Rs 600 cr by Dec end

Written by Rachana Khanzode | Mumbai | Updated: Jan 20 2011, 05:00am hrs
Parsvnath Developers intends to reduce debt to Rs 500-600 crore from the existing Rs 1,100 crore, over the next 12 months. This would be largely done by focusing on the existing inventory. Parsvnath Developers chairman Pradeep Jain said the firm was not looking at any new launches and would instead focus on completion of existing projects.

We are not looking at any new launches as the major focus is to give delivery of existing projects on time. Delivery of projects has been a major concern for buyers and we intend to fast track the completion of our existing projects, as residential projects are in huge demand. Of the 80 million square feet, we have already sold about 42 million sq.ft. We would also sell the remaining 38 million sq.ft this year, Jain said. The firm is not looking at raising any funds in the near term. We are not looking at raising funds immediately as we have cash about Rs 150-200 crore of cash in hand and Rs 4,000 crore to flow-in over the next three years on the back of existing sales, he added. The firm's debt to equity ratio was at 0.45.

Jain added that the firm was not looking at expanding to other cities at the moment. We are trying to consolidate ourselves at this point in time and focus on existing projects rather than going to other cities.He also views that the existing prices could improve based on certain locations. There is no concern as of pricing as residential projects both in luxury and low cost housing are in huge demand.

Parsavnth recently has inked a Rs 100 crore agreement with SUN-Apollo India Real Estate Fund LLC, an international real estate private equity fund for an investment in its premium residential project at Ghaziabad, Uttar Pradesh. The project is spread over an area of approximately 31 acres known as Parsvnath Exotica- Ghaziabad. SUN-Apollo will invest up to Rs 100 crore for a 49.9% stake in the project SPV, Parsvnath Buildwell, which will develop the Project.