Noida based Prateek Group has raised some major funding. The realty firm has raised Rs 275 crore from Piramal Capital and Housing Finance for its ongoing 40-acre housing project at Ghaziabad.
The funding is expected to go into Prateek Grand City, a Prateek Group’s 2014 project ongoing 40-acre housing project in Ghaziabad. The company would develop 7,000 units in this project in two phases.
“We have raised Rs 275 crore from Piramal for our Grand City project,” Prateek Group Chairman Prashant Tiwari said, Money Control reported.
Tiwari further told that they have already launched the first phase of 4,500 units out of which about 3,000 units have already been sold despite the slowdown. In the first phase, the company has reportedly launched units in the price range of Rs 28-63 lakh.
The project is near completion. Prateek Group reportedly has claimed that it will give exit to Piramal Group from this project by repaying their investments.
This is not the first time that Piramal Group has invested into Prateek Group’s project. Earlier too, Piramal Group had invested Rs 200 crore in another residential project of Prateek Group ‘Prateek Edifice’ in Noida’s sector 107.
As a matter of fact, Piramal’s recent funding seems to be part of its investment spree in NCR. The group has also financed Rs. 400 crore in various projects of ATS Infrastructure Ltd in Noida, which comprise of a completed commercial office asset, an under-construction office project, and an under-construction residential project.
Piramal has also committed Rs. 850 crore to M3M India Pvt. Ltd for its mixed-use project on Gurugram’s Golf Course Extension road. The project has premium residential units and a mix of retail, food and beverage and entertainment outlets.
The NCR real estate market has been in a slump for some time. Lakhs of buyers in Delhi-NCR region are reportedly stuck in projects of many developers including Jaypee group, Amrapali, Unitech and The 3C Company. Piramal Capital and Housing Finance has been funding in a big way to real estate developers, which are facing cash-crunch because of sluggish housing sales.
Piramal Capital’s current portfolio in NCR evidently extends across the capital stack and across various real estate asset classes. The group has focused on volume-driven residential projects in Noida and Greater Noida, two markets that have performed reasonably better than Gurugram.