Gaurs Group Takes Over Amrapali Projects
Developer Gaurs Group is making a significant investment of ₹2,123 crore in three unfinished Amrapali projects. These projects were previously under the purview of the state-owned NBCC, but have now been entrusted to the Gaurs Group.
Project Details
The projects Gaurs Group has taken on include Amrapali Centurian Park, Verona Heights, and Heartbeat City, totaling approximately 10,900 apartments. These projects will be executed by GaursonsHitech Infrastructure Pvt Ltd, a wholly-owned subsidiary of Gaurs Group. Having completed over 50 commercial and residential projects, amounting to more than 54 million square feet, Gaurs Group is currently not undertaking any new large-scale projects.
NBCC's Role
NBCC is currently overseeing the completion of 23 different Amrapali housing projects, with an estimated completion cost of around ₹8,400 crore. The government-owned enterprise has categorized Amrapali's incomplete projects into three distinct groups, and the delivery of apartments is imminent. Over 10,000 homebuyers are anticipated to receive possession of their apartments by June 2021. These individuals are required to remit the outstanding amount for their flats in four equal installments of 25% each. The remaining homebuyers will be presented with a payment plan consisting of ten installments of 10% each, aligned with the delivery schedule.
Gaurs Group's Perspective
"The government shifted its focus to the infrastructure segment, and as a group we also decided to diversify our activities. We have no major real estate projects at this time and have sold most of our under construction stock. We are only completing Amrapali projects, and NBCC is responsible for the sales of these flats.”
Expanding on their rationale, they stated, “Since our experience is in real estate, it was natural to choose Amrapali projects. We plan to increase our construction portfolio to about Rs 7,000 in the five years. Gaurs Group have invested in construction for many years, and want to increase presence in the infrastructure area and are ready to take on government projects as well.”
Elaborating on the financial aspects, the company explained, “We issue a monthly invoice to NBCC depending on the completion of apartments. We cover construction costs through internal fees and bank guarantees. The projects will be completed within 36 months of the allotment of tender.”