Real estate company Assotech, in partnership with private equity firm Sun-Apollo, announced the development of a housing project in Gurgaon. The venture is slated to receive an investment of approximately Rs 500 crore over the next three years.
Sun-Apollo Real Estate Advisors has invested Rs 75 crore to acquire nearly 50 percent stake in Assotech’s subsidiary firm, which will develop the project. Assotech, on the other hand, has infused Rs 76 crore for a nearly 51 percent stake in the subsidiary. "We are entering into the Gurgaon market by launching a 12-acre housing project in partnership with Sun-Apollo. This is our first project to receive private equity investment," said Assotech Managing Director Sanjeev Srivastava.
The project, situated on Dwarka Expressway, has been launched at a price of about Rs 5,000 per square feet. Srivastava mentioned that the company has acquired licensed land where it will develop approximately 580 apartments, 23 villas, and 102 flats for the economically weaker section. "The total investment in this project, ‘Assotech Blith,’ would be about Rs 500 crore, including the land cost over a period of the next three years," he added.
Srivastava also noted that the investment will be funded through equity contributions from both partners, bank loans, and advances from customers against sales. Alok Aggarwal, the Principal at Sun-Apollo, stated, "The two partners are committed to invest more if required for construction activities." The private equity firm has previously invested in real estate projects of Parsvnath Developers and Godrej Properties in north India. "We will do more projects with Assotech in the future if there is a good opportunity," Aggarwal concluded.
Currently, Assotech is developing various housing and hotel projects in the National Capital Region (NCR), Uttar Pradesh, Odisha, Uttarakhand, Madhya Pradesh, and Bihar.