Realty firm Tulip Infratech will invest Rs 5,500 crore over the next eight years to develop a premium mixed-use project in Gurugram as part of its expansion plan and tap the rising demand for luxury homes, a top company official has said.
In an interview with PTI, Tulip Infratech Chairman and Managing Director Parveen Jain said the company has acquired this 19-acre stalled project, located on Golf Course Road, Gurugram, from realty firm Vipul Ltd.
The company has launched its housing project Tulip Monsella, comprising 1,100 flats, at Rs 20,000 per square foot. It will also build 250 units for economically weaker sections.
Jain, who is also National Chairman of realtors’ body NAREDCO, said the total developable area in the project is 60 lakh square feet, of which 6 lakh square feet is commercial space.
“We will invest around Rs 5,500 crore to develop the entire project. The project will be constructed in phases over a period of eight years,” he told PTI.
The total sales realisation from this project is estimated at Rs 7,000 crore, he added.
“We have signed a joint development agreement with Vipul Ltd. The beneficiary interest transfer has been approved by the Town and Country Planning Department, Gurugram. We have taken over all the liabilities and we will complete the project,” he said.
Jain said the company has taken over the total debt of around Rs 450 crore from Vipul Ltd. PNB Housing Finance Ltd has restructured the debt.
“The total interest outgo is estimated at around Rs 40 crore annually,” he added.
Asked about the source of funding, Jain said it would be met through internal accruals.
“We have already invested around Rs 250 crore so far in this project. The sales revenue from this project as well as our other housing projects will be deployed. We have unsold housing stocks in other group housing projects,” Jain said.
The construction work has already started on this project. The company is using ‘Mivan construction technology’ where the structure is 100 per cent reinforced cement concrete and no brickwork is used which makes the structure more sustainable and durable.
Jain said around 350 housing units have already been sold by Vipul Ltd. Around 50 per cent of the commercial area has also been sold.
The company will also use the receivables from the units already sold in the construction of this project, he added.
“Delhi-NCR market has been affected because of stalled projects. We have taken over this project from Vipul Ltd. This will give a huge relief to the existing customers in this project,” Jain said.
He noted that the demand for luxury housing has improved in Gurugram, and prices have also appreciated in the last two years.
Tulip Infratech, which was founded in 2005, has so far completed 14-15 projects, mostly in Gurugram.