The Hindu Business Line : Ajmera Group looks overseas to rake in revenues

Mumbai, April 9 While India appears to be a one-stop destination for global realty companies, Mumbai-based Ajmera Group is looking West to rake in revenues.

The group, said to possess the third largest land bank in Mumbai, has formed a joint venture with Mayfair Housing to construct a 7.31 lakh sq ft high-end residential and commercial tower in Bahrain.

Land for the Rs 600-crore venture has been purchased for Rs 150 crore. “It is a 60:40 joint venture with Mayfair Housing and about Rs 100 crore (including accruals) would go in as our contribution. The debt portion will be Rs 500 crore,” said Mr R.S. Ajmera, Managing Director, Shree Precoated Steels Ltd.

Shree Precoated Steels is the group’s flagship company. The group merged its real estate company Anik Development Corporation with SPSL last year. The promoters were issued 4.16 crore shares of SPSL in lieu of Anik shares. “The merger was to consolidate all activities under a corporate umbrella,” said Mr Ajmera.

Projects in India

The group has developed 170 lakh sq ft in Mumbai, besides large format projects in Pune, Rajkot, Ahmedabad and Surat.

In Mumbai, the company has begun work on phase II of Bhakti Park in Wadala, which will comprise 10 lakh sq ft of residential and 30 lakh sq ft of commercial space. The project cost of Rs 1,300 crore is to be self-financed along with accruals. The project is expected to be completed four years.

Phase-I of the project, comprising 17.69 lakh sq ft of residential space, was completed in 2007-08. The debt component of the Rs 400-crore project was Rs 50 crore.

This apart, a Rs 2,500-crore residential/hospitality-cum-commercial area is in the pipeline in Kanjur Marg here, comprising residential space of 26 lakh sq ft and commercial of 54 lakh sq ft. The company intends to pump in Rs 500 crore and raise Rs 1,000 crore by way of debt. It will be a green building and hopefully the State will permit additional FSI (floor space index), said Mr Ajmera.

A 15-floor residential project is also being set up in Bangalore, close to the Electronic city at a cost of Rs 160 crore. The 12.6 lakh sq ft complex will also have 1.40 lakh sq ft commercial space. Bookings have been encouraged with the company offering residential segments at a base price of Rs 2,600 a sq ft. “We are considering looking for a private placement of about Rs 500 crore to fund ongoing projects, he said.

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