Vatika gets Rs 1,000 cr from overseas investors
The company plans to generate another Rs 1,000 crore in 6-9 months once the first round of funding has been put to use, reports Varun Soni.business Updated: Nov 29, 2007 21:02 IST
Delhi-based realty developer Vatika Group has signed agreements with three reputed international financial institutions, the Wachovia Bank, Baer Capital and Goldman Sachs for financial participation in the company to the tune of Rs 1,000 crore ($250 million). The funds disbursement has already begun and the complete infusion would be completed by the end of the first quarter of 2008.
The company plans to generate another Rs 1,000 crore in 6-9 months once the first round of funding has been put to use. Once the money has been deployed and the acquired land put to use, Vatika plans to take the IPO route in 2009 worth Rs 20,000 crore.
Around 50-60 per cent of the first round of investment (Rs 1,000 crore) would be used to develop two major townships – an 800-acre integrated project in Jaipur and a 600-900 acre township in the new master plan of Gurgaon.
"We will consolidate our land holdings for these projects to make it contiguous as well as develop good quality infrastructure for the two. The remaining amount would be used to consolidate our commercial properties in the NCR, where we have 2.5 million sq ft space under construction," said Pankaj Pal, president, marketing, sales and business development, Vatika Group.
The company also plans to start a mid-size project (150-300 acre) in a Tier II city like Nagpur, Pune or Nashik. "Once we achieve this, obtaining a second round of funding to the tune of Rs 1,000 crore will be easy for us. This will also instill confidence in our investors," Pal added.
The Rs 8,000-crore Vatika Group has projects across the country spread over a cumulative total of approximately 2,000 acre. The company has expanded its hospitality business by recently partnering with Starwood Hotels and Resorts Worldwide Inc for their super luxury five-star brand, Westin, in Gurgaon.