Realty firm Puravankara Projects today said it has acquired 31.69 acres land in Chennai for Rs 110 crore to develop affordable homes.
The Bengaluru-based firm has raised Rs 82.5 crore from private equity (PE) firm ASK group to fund this land deal.
In a filing to the BSE, Puravankara said it has "acquired around 31.69 acres of land in Chennai's prime location, Poonamallee with a developmental potential of 3.3 million sq ft."
The project would be developed under the 'Provident' brand in three phases to provide affordable housing.
"The acquisition cost of land stands at Rs 110 crore".
The average selling price of the units would be in the range of Rs 4,500 per sq ft and the project is expected to generate revenues of Rs 1,500 crore, Puravankara said.
"We are excited to enter into our first strategic private equity (PE) partnership," the company's Joint Managing Director Ashish Puravankara said.
When contacted, Puravankara CEO Jackbastian K Nazareth said the company has roped in ASK group to buy the land and has raised Rs 82.5 crore from the PE firm.
ASK Group may invest more in this project if needed, he added.
Puravankara has entered into PE partnerships for this new acquisitions as part of its strategy to rope in strategic private equity players to meet growth objectives and strengthen balance sheet.
The project is expected to be launched by the end of this fiscal and be completed within 60 months.
Besides Bengaluru, Puravankara Projects has presence in Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Mumbai and Pune.
It has 24.87 million sq ft of projects under development with additional 81.83 million sq ft in projected development over the next few years.
Its wholly-owned subsidiary Provident Housing was established in 2008 to develop mid-segment housing.
