Page 16 - Banking Finance February 2018

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

State Bank to raise Rs. Puravankara ltd to invest Rs.600 crore on low-cost

20,000 crore for afford- housing project
able housing from long Puravankara Ltd will invest Rs.600 crore to construct an affordable housing
project in Bengaluru.
term bonds
SBI has said its board has given nod The project, comprising 2,100 units, will be
to raise Rs. developed on a 20-acre land parcel which is
20,000 owned by Keppel Puravankara Development
crore for fi- Pvt Ltd, a joint venture between Puravankara
nancing af- and Singapore-based Keppel Land.
fordable
housing and infrastructure projects Puravankara has launched its first premium affordable housing project of the year
through long- term bonds. 'Provident Park Square' with an investment of Rs600 crore, the company said in
a statement.
"The executive committee of the
Central Board in its meeting held to- "Approximate investment of Rs.500-600 crore with an estimated top line of
day has inter alia approved, the pro- Rs1,100-1,300 crore in the next four to five years," the company said. The apart-
posal for issuance of long term ments are in the price range of Rs27-54 lakh. Puravankara will have 75% share
bonds of Rs 20,000 crore for financ- in the revenue from this project while the rest will be of Keppel Puravankara
ing of infrastructure and affordable Development Pvt Ltd, the landowner.
housing in domestic and overseas
market in FY 2017-18 and FY 2018- Ashish R. Puravankara, managing director, Puravankara Ltd, said affordable
19," the country's largest bank said housing not only triggers a robust growth for the sector but also enables a higher
in a BSE filing. gross domestic product (GDP) for the economy. This project is in line with its
Although the real estate sector is fac- plan to develop 10 million square feet of affordable housing projects in the next
ing multi-year slowdown, the afford- 13-15 months, he added.
able housing segment has gained mo-
mentum after the government pro- The project is being taken to market through quasi book building method, where
vided infrastructure to it in the last the price discovery process is driven by data from fundamental demand-supply
year's budget. The government is metrics. Puravankara Ltd has presence in Bengaluru, Kochi, Chennai, Coimbatore,
also providing interest subsidy to buy- Mangaluru, Hyderabad, Mysore, Mumbai and Pune. It has 30.72 million sq ft of
ers on the low cost homes under completed projects and 24.92 million sq ft of projects under development. The
Pradhan Mantri Awas Yojana. total land assets of the company are 75 million sq ft.

16 | 2018 | FEBRUARY | BANKING FINANCE

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