Omaxe to sell Chandigarh plot | india | Hindustan Times
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Omaxe to sell Chandigarh plot

india Updated: Sep 09, 2011 20:32 IST
Sachin Dave

Delhi-based real estate developer Omaxe has put 25 acres of land in Chandigarh on the block and is expecting to raise around Rs 150 crore.

The project was earlier slated to be a mixed development project.

The company has a total land bank of 350 acres in Chandigarh, valued at Rs 2,000 crore according to the industry estimates. The land would be sold after dividing it into plots without developing it.

"We had 500 acres in Chandigarh, of which we have sold about 147 acres and have a plan to sell 25 acres during the current quarter," said Rohtas Goel, chairman and managing director, Omaxe. "We have permission for mixed development (residential and commercial) for the location but we will only decide about it at a later stage."

The company would divide the land parcel in smaller plots and would be selling them. The minimum cost of a plot comes to R60 lakh according to the local real estate brokers.

"There are 300 square yards, 400 sq yd, 500 sq yd and 100 sq yd plots and the expected price is around Rs 23,500 sq" said Jayant Kumar Lakhotia of Property Zone, a Chandigarh based real estate brokerage.

Industry experts said the company has been trying to increase its cash flows in an attempt to repay its debt.

Last month the company had announced that it plans to reduce its total debt by 25% to Rs 1,200 crore during the financial year. As on June 30 the company's gross debt was around Rs 1,500 crore and its net debt stood at about Rs 1,050 crore.