Ganesh Housing in talks with PE funds

Gujarat-based real estate company Ganesh Housing Corporation Limited (GHCL) is in talks with a couple of real estate private equity (PE) funds to set up special purpose vehicles (SPVs) for two of its upcoming integrated township projects.

Spread across an area of 210 acres and 100 acres, the projects will come up at costs of Rs 2,600 crore and Rs 1,000 crore, respectively.

Refuting any plans for public issue to raise such huge funds, Shekhar Patel, managing director of GHCL, said, "The company has enough funds to finance these projects. Moreover, we are in talks with 2-3 real estate PE funds to set up SPVs for our integrated township projects which will be executed by our 100 per cent subsidiaries like Madhul Complex Pvt Ltd."

The company has already signed MoUs with farmers for acquiring the requisite land. Patel said the construction work on these projects will begin from August-September 2008.

GHCL also stands to earn an additional land bank of 160 acres after the High Court of Gujarat approved the scheme of amalgamation of five companies.

The amalgamating companies "" Ramasagar Infrastructure Pvt Ltd, Nachiket Properties Pvt Ltd, Manjari (Thaltej) Complex Pvt Ltd, Shaharsh Infrastructure Pvt Ltd and Ganesh Infrastructure Pvt Ltd, are owned by the promoters of GHCL.

"We were in need of some land bank and found the amalgamation an easy route to earn some without shelling out much money. Our land bank which was around 485 acres now stands at 645 acres of which the 135 acres owned by Ganesh Infrastructure Pvt Ltd will be utilised for the upcoming IT SEZ in Ahmedabad," added Patel.