Casa Grande Pvt. Ltd., a premium real estate enterprise in Chennai, today announced the buyback from investor Fulcrum ventures, a family enterprise turned venture capital fund. With the buy back the promoters holding in the company increased to 100 per cent. While the buyback, which was to the tune of Rs 50 crore, funded through internal accruals, the company said it lined up projects worth Rs 750 crore open for stake dilution for equity investors.
M Arun Kumar, founder and managing director, Casa Grande Private Limited said the company is at a point of inflection, and is ramping up sizable pipeline of business. At the current situation it made business logic for this investor’s exit which has turned out to be mutually beneficial.
Casa Grande was primarily funded by Fulcrum Ventures with a seed capital of Rs 5 crore invested in tranches between 2004 and 2006. The investor was also paid intermittent returns through dividends during the period 2006-12 in addition to the final exit payout with a return at 10X in a period of 6 years.
He added, the company, which call itself as Villa specialist, has constructed 1.5 million sq.ft till date and has projects worth Rs 750 crore are in the pipeline. Casa Grande is in growth phase and with projected sales of Rs 450 crore and revenue/accounting turnover to the tune of Rs 225 crore in 2012-13., said Kumar.
The company has acquired new parcels of lands - More than 50 acres in Oragadam, expanded in to other cities, entered in to new verticals (started an interior design company and property management company ) for synergy.
He added, the company is open for private equity infusion on a project to project basis and would look at enterprise level in the next 2.5-3 years. The company already tied up funds for the projects, which are in pipeline and said it is also open to raise money against these projects, which can be used to acquire lands for the future projects.
Meanwhile, the company has launched two new businesses on property management and Do My Home, which gives end-to-end solution for the customers. Already this company got orders worth Rs 80 lakh.
