NEW DELHI: Realty firm Emaar India has raised about Rs500 crore debt so far this fiscal and plans to raise another Rs500 crore by March 2018 to meet construction cost of its ongoing and upcoming projects.
Dubai-based Emaar Properties entered Indian real estate market in 2005 in partnership with India’s MGF Development and invested Rs8,500 crore through joint venture firm Emaar MGF Land. However, in April last year, it decided to end this JV.
Emaar India has been focusing on execution of ongoing projects since the initiation of demerger process, which is pending before the National Company Law Tribunal (NCLT). “We have raised about Rs500 crore since April this year from different banks and we have plans to borrow another Rs500 crore,” Emaar India CEO Sanjay Malhotra told PTI. The company has raised more than Rs3,000 crore debt since the two companies decided to end their partnership to complete ongoing projects and replace costlier debt. The company has a debt of over Rs5,000 crore.
Emaar India is targeting to deliver 11,000 units by 2018 -19 fiscal and has ramped up workforce at sites to around 16,000 labourers to complete existing projects. “Our complete focus is on delivery. The company has got occupancy certificates for 2,600 units in last 15 months and has applied for another 3,000 units,” he said.
With some revival in demand for ready-to-move-in properties, Emaar India has decided to launch six projects, comprising 1,600 units, in Gurugram this fiscal with an estimated investment of Rs1,200 crore. “We are seeing a lot of traction for ready-to-move-in units and those nearing completion. So, we have decided to launch six projects in next six months comprising 1,600 units,” Malhotra had said earlier.
The company will launch five housing projects and one commercial project in Gurugram. Emaar India has about 50 ongoing projects in Gurugram, Jaipur, Lucknow, Mohali and Chennai. The company has raised debt and engaged various construction companies to complete these projects. Malhotra had said in May that Rs2,000 crore would be invested over the next two years to complete all its ongoing 50 projects.