Uppal, QVC tie up for Rs 1,000-cr township

Real estate company Uppal Group has tied up with IL&FS-funded venture capital firm QVC Realty for developing a 150-acre township in Gurgaon, entailing a cost of Rs 1,000 crore.

"We have entered into an agreement with QVC for developing a township at a prime location in Gurgaon. It will be a Rs 1,000-crore township, where the project cost will be shared equally by both the parties," Uppal Group Director (finance) Ajay Mangal said.

The company has diluted 50 per cent stake of the project to QVC Realty and expects a realisation of Rs 1,600 crore from the project, he said.

Uppal has already acquired the land for Rs 600 crore in Gurgaon Sector 99, which is adjacent to the special economic zone being developed by Reliance, Mangal said.

On funding, he said the company has already invested its share of Rs 300 crore for land acquisition and would pump in the remaining Rs 200 crore through debt and internal accruals.

The construction for the township would start in 4-5 months and would be completed in four years.

"We have applied to the government for the letter of intent. Once we get it, the construction will start within 4-5 months," Mangal said.

It would primarily be a residential complex, with some portion for commercial purpose, he added.