New Delhi, Mar 21 (PTI) Realty firm ATS's founder Getamber Anand today launched a new venture HomeKraft to develop mid-income and affordable housing projects and will invest Rs 2,000 crore over the next five years to build about 6,500 units.
Affordable housing, which has been accorded with infrastructure status in 2017 Budget, has gained momentum on the back of interest subsidy offered by the government and lower GST rates.
HomeKraft will develop homes of size ranging from 950 sq ft to 1,600 sq ft and in a price range of Rs 30-70 lakh, Anand told reporters here.
To start with, he said, the company would develop projects in the National Capital Region and then across the country.
"In ATS Infrastructure, we are developing boutique housing and large format apartments of over 1,600 sq ft. So I have launched a new venture HomeKraft where flats of size lower than 1,600 sq ft will be offered to customers," said Anand, who is also the chairman of realtors' body CREDAI.
He said the company has already entered into joint development agreements with land owners for four projects covering 10 million sq ft of saleable area.
HomeKraft's CEO Prasoon Chauhan said the company plans to develop about 6,500 units over the next 3-5 years with expected sales revenue of Rs 4,000-5,000 crore.
The company would invest about Rs 2,000 crore on construction of these units and the same would be funded through internal accruals, debt and private equity funds, he said, adding that the first project would be launched by June this year.
On shareholding pattern of this new firm, Anand said the company has been founded by him in his personal capacity and the team would also have some equity. "It will be at arm length with the ATS".
The company is in talks with PE players to raise funds at entity level, he added.
"We are building on the legacy of ATS, which is synonymous with quality construction and timely delivery. Moreover, in HomeKraft we are also designing every apartment with maximum space efficiency and integrated utilities which will fulfil the housing needs of this segment," Chauhan said.
ATS has delivered nearly 30 million sq ft of residential space and 40 million square feet of area in under-construction.
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI