QVC Realty Eyes ₹600 Crore Fundraising for Southern Expansion
QVC Realty, a prominent real estate developer, plans to raise a substantial ₹600 crore in 2009. This funds mix of equity and debt will primarily facilitate the acquisition of large land tracts in southern India, particularly near the new airports in Bangalore and Hyderabad.
Strategic Expansion Plans
According to a senior QVC official, ₹200 crore of the raised funds will be allocated towards the development of its ambitious ₹2,000 crore Gurgaon Township Project. This project is undertaken in partnership with Delhi-based Uppal Group.
Quotes from QVC's Promoter
“Our focus is on acquiring land in southern metros, approximately 100 acres in both Bangalore and Hyderabad, close to their new airports. We believe these cities will expand in the direction of the airports. Additionally, funds will be used for the development of our current projects,” stated Prakash Gurbaxani, QVC’s promoter.
Investment from IL and FS
IL and FS, which has already invested $100 million in QVC in April 2007, is likely to invest up to ₹400 crore. This investment provides QVC with the flexibility to either raise debt or introduce a strategic investor into the Gurgaon township's Special Purpose Vehicle (SPV).
Portfolio Overview
- QVC Realty currently has six projects in various development stages.
- These include integrated township projects in Gurgaon and Pune, alongside standalone developments in Pune, Bangalore, and Chikmagalur (Karnataka), totaling about 20 million square feet.
New Partnerships and Project Launches
- QVC has partnered with Sobha Developers (Bangalore) and Chintels India (New Delhi) for its second Gurgaon township project.
- The company has formally launched its ** ₹150 crore Bangalore Residential Project – QVC Hills**. This project involves constructing 100 premium villas (priced upwards of ₹5,500 per square foot) on a 26-acre plot near the Devanahalli airport.
- Future plans include developing an additional 50 acres in the coming years with an investment of ₹250 crore, as per Mr. Gurbaxani.