NEW DELHI: The Aditya Birla Group has made a substantial investment of Rs 130 crore in a residential housing project located on the Dwarka Expressway. This project is being developed by a joint venture between Tata Housing and Sidhartha Group.
Investment Details
- Investment Amount: Rs 130 crore
- Expected IRR: 25-27% over four years
- Location: Dwarka Expressway
The Sidhartha Group has pledged its 49% share in the joint venture with Tata Housing for the Gurgaon project to the Aditya Birla Real Estate Fund. This agreement is structured in such a way that if Sidhartha Group is unable to meet its financial obligations and promised returns, its stake in the project will be transferred to the fund.
Project Background
Last year, Tata Housing and Sidhartha Group formed a 51:49 joint venture to develop a residential project spanning 20.8 acres. The project is strategically located at the entrance of Dwarka Expressway when approaching from Delhi and is in close proximity to the international airport. The land was originally owned by the Gurgaon developer.
Expected Revenues
Both parties expect to generate significant revenues of approximately Rs 1,300 crore from the project. Aditya Birla Group anticipates returns of Rs 550 crore on its investment of Rs 130 crore. Tata Housing has already sold 23% of the project in the first phase.
Other Transactions
In another transaction on Dwarka Expressway, ASK Property Investment Advisors had invested around Rs 180 crore in a residential project being developed by ATS Infrastructure.
Market Conditions
A slowdown has been observed across most real estate markets. The economic downturn and job uncertainty have led buyers to be cautious. Some developers are offering freebies and promotions to attract buyers in the face of price corrections.
The secondary market has also suffered as investors who had invested in projects in Gurgaon and other parts of the country are struggling to find buyers.