Property developer Indiabulls Real Estate (IBREL) plans to build residential projects over 9.8 million square feet in the current fiscal year to generate cash flows.
The Mumbai-based developer planned to launch eight projects in six cities as part of the development plan, the company told analysts and investors as part of its preparation for the proposed qualified institutional placement (QIP) issue, through which it aims to raise as much as $600 million (Rs 3,000 crore).
The company is already talking to investors to raise at least $150 million (Rs 750 crore) from sale of shares to select investors as part of the plan.
All the projects, mostly in the affordable housing category, to be launched this year are expected to be completed by December 2013, according to a presentation prepared by the company.
The proposed residential launches include, Riverside in Ahmedabad, Indiabulls Greens, Navi Mumbai, Lakeview Park, Chennai, Indiabulls Paramount, Indiabulls Metropolitan and Indiabulls Orion, Gurgaon, Indiabulls City, Sonepat (NCR) and Hillside View, Vishakhapatnam.
Indiabulls’ commercial leasable area in Mumbai is expected to go up to 5 million square feet from 3.4 million square feet after the Maharashtra in November 2008 raised the maximum developable area to 4 from 2.66.
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The company said it also has agreed to sell a part of its One Indiabulls Centre, located at Lower Parel, to a foreign government body for an implied rate of Rs 18,818 square feet. It didn’t name the foreign government body though industry sources said the property was sold to the British Council (BCI) for Rs 30 crore.
Indiabulls Retail owns a 45 per cent stake in Indiabulls Property Investment Trust (IPIT), the Singapore-listed entity. IPIT owns two properties at Lower Parel — Indiabulls Centre and Elphistone Mills.