Mantri Realty mulling 25% stake-sale in its Gwalior SPV
Realty major, Sunil Mantri Realty, is considering a 25 per cent stake-dilution in its special purpose vehicle, Sunil Mantri Gwalior, a top company official said.Updated: Aug 10, 2008 09:50 IST
Realty major, Sunil Mantri Realty, is considering a 25 per cent stake-dilution in its special purpose vehicle, Sunil Mantri Gwalior, a top company official said.
"We are investing around Rs 2,000 crore to develop an integrated township in Gwalior. We are talking to a few big-time investors for a stake-sale in our SPV," Sunil Mantri Realty's Chairman, Sunil Mantri, told PTI.
The company was already in negotiations with a few big-time investors, he said, without, however, divulging their identities.
Amongst the potential investors are a Canadian and a Singapore entity and one from India, he said. "All are highly-reputed entities," Mantri said.
"We are looking at a stake-sale of 25 per cent amounting to around Rs 300 crore. The funds raised would be used for the Gwalior project," he said.
The company has already got an in-principle nod for Rs 300 crore term loans from banks and by September this component should be tied-up, he said.
The Mumbai-based realty major with a land bank currently at 4,000 acres is betting big on Madhya Pradesh and plans to invest around Rs 4,000 crore in the state over the next four to five years.
"Madhya Pradesh is a high-potential market. We plan to invest around Rs 4,000 crore there in the next four to five years," Mantri said.
The company initially plans to focus on Gwalior where it has acquired 2,375 acres for development. The investment here is pegged at around Rs 2,200 crore.
"Over the next two years, we plan to enter the other high-potential markets of Bhopal and Indore at an investment of around Rs 1,500-2,000 crore," Mantri said.
The company recently inked a MoU with the Madhya Pradesh Government to acquire 2,000 acres of land in Gwalior to build an integrated township at an investment of Rs 2,000 crore spread over eight to ten years.
"Work on this project will commence mid-next year," Mantri said.
On the existing 375 acres, the company is developing a luxury and mid-market residential project and a mall at an investment of Rs 200 crore. These are expected to be completed in the next 15-months, he said.