TDI Infrastructure, a prominent player in the real estate sector, has set its sights on investing Rs300 crore towards the creation of two substantial township projects over the next four to five years. Now, according to Managing Director Kamal Taneja, the company is gearing up to unveil these two residential townships located in Indore and Meerut, each stretching over an impressive 150 acres, with a target launch set for the upcoming six months. Presently, they are addressing regulatory challenges before commencing construction.
Taneja has mentioned that each of these townships would absorb an investment of Rs150 crore in construction alone. When questioned about the funding sources for these developments, he outlined a strategy that would encompass a blend of debt and equity.
In response to inquiries regarding potential collaboration with private equity players amid a liquidity crunch in the banking domain, Taneja remarked: "We are not completely closed to PE funding, but in today’s scenario, they are expensive and their expectations are going very high." He observed that private equity players have shifted to a more structured approach, an avenue TDI would prefer to avoid.
Commenting on market conditions, he noted, "There is obviously a funding problem and it is available in a limited way to those developers who are delivering quality products. It has created little delay in disbursement of loans."
To navigate current challenges, TDI Infrastructure will refrain from expanding its land bank, Taneja confirmed. Meanwhile, the company has introduced an innovative new scheme for construction solutions pertaining to plots within its Kundli township, labeled ‘TDI City.’ Under the ‘build and earn’ initiative, they will deliver a comprehensive construction solution to the plot owners while providing rebates of up to 25%.
Taneja expressed enthusiasm about their ambitions, stating, "We want to create a new Gurgaon in Kundli. For this, we will offer standardized constructions to the plot owners, through which they will be getting a good rebate also.“
The ‘TDI City’ project encompasses an extensive 1,500-acre integrated township that integrates plots, villas, group housing, commercial complexes, schools, and hospitals, all being developed at an estimated investment of approximately Rs10,000 crore. Completion of this venture is expected by 2013, with plans to develop around 15,000 apartments and provide 12,000 plots. Following the construction under the scheme, Taneja noted they may retain some of the plots for future leasing opportunities. Furthermore, the company currently boasts a robust land bank of around 2,600 acres, with plans to develop it over the next 6 to 7 years. Presently, TDI is occupied with the development of five township projects across about 2,000 acres of land.