Taking advantage of the fall in property prices, real estate firm Anant Raj Industries plans to invest Rs 450 crore to acquire a land bank, which it would use for developing low-cost housing in north India. The Delhi-based firm has Rs 750 crore as cash-in-hand, out of which, it has earmarked Rs 450 crore for land acquisition while the rest would be utilised to complete existing projects.
“We feel this is the right time to look at low-cost housing and the most important element of low-cost housing is land which is now available at an attractive rate,” the company Director and CEO Amit Sarin told PTI. Sarin noted that land prices have gone down by up to 70 per cent in north India. In prime areas of Delhi and Gurgaon, land prices have declined by 30-40 per cent.
The company is in talks with many small builders to buy distressed assets that are available in plenty at present due to a slowdown in the property market, he said. At present, Anant Raj has a land bank of nearly 1,000 acres, mostly in the NCR region.
Sarin said the company is looking at expansion as it has almost zero debt and a cash balance of Rs 750 crore. He said the land acquisition cost would be key for the success of low-cost housing projects.
To combat the slowdown in the property market the real estate developers are launching affordable housing projects. The government is also providing incentives for such projects in the form of lower interest rates.
Ref:http://www.indianrealtynews.com/real-estate-india/realty-firm-anant-raj-industries-to-invest-rs-450-cr.html
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