Parsvnath Developers, the Delhi-based realtor, plans to invest up to Rs 500 crore for land acquisitions in fiscal 2009. The focus is on acquiring land for integrated townships, with no intention of aggressively ramping up the land bank, as stated by Pradeep Jain, chairman at Parsvnath.
The realtor added 66 acres of land in its latest quarter, taking the total land bank to a significant size.
Jain further mentioned that the realtor would invest Rs 400-Rs 500 crore out of internal accruals to acquire land in the current financial year, depending on liquidity.
Parsvnath has completed land acquisition for 8 special economic zone (SEZ) sites, located at Dehradun, Indore, Kochi, Gurgaon, Nanded, Hyderabad, Mysore, and Jaipur. Construction for most of the SEZs will start in two months.
The realtor is also in advanced talks to sell stake in its SEZ projects to fund its developmental plans. Parsvnath is in talks with at least five private equity funds, including Saffron India Real Estate Fund. The formal announcement for stake dilution is expected in a month.
Parsvnath Developers plans to build nine five-star and four four-star hotels. It also expects to open hotels in Shirdi and Mohali within 9-12 months.
For its retail foray, Parsvnath plans to open five to ten stores with formats including hypermarkets, convenience stores, food joints, etc., during the current fiscal. The realtor is in talks with a major retailer for a joint venture, and the announcement is expected within a month. The per-store cost would be around Rs 3,500-4,000 per square feet.