Realty firm Parsvnath Developers will invest Rs 225 crore in partnership with private equity firm Red Fort Capital to develop a high-end official complex in the heart of the national capital. The company started the construction of the project ‘Red Fort Parsvnath Tower’, having a built up area of three lakh square feet, located on Bhai Veer Singh Marg near Gole Market.
Last month, Parsvnath had sold 24.5 per cent stake in the project, which it bagged from Delhi Metro Rail Corporation, on a BOT (build-operate-transfer) basis, to Red Fort Capital for Rs 120 crore.
Last month, Parsvnath had sold 24.5 per cent stake in the project, which it bagged from Delhi Metro Rail Corporation, on a BOT (build-operate-transfer) basis, to Red Fort Capital for Rs 120 crore.
“The project cost of this official complex will be Rs 225 crore and it would be completed in the next 18 months. The construction would be done by L&T and the project will be high-end, catering to the needs of the future generation,” Parsvnath chairman Pradeep Jain, said.
The company expects Rs 100-120 crore per annum as rental from this project starting from 2012-13 fiscal. “We expect rental at over Rs 300 per sq ft per month,” Jain added.
The company expects Rs 100-120 crore per annum as rental from this project starting from 2012-13 fiscal. “We expect rental at over Rs 300 per sq ft per month,” Jain added.
The total project cost includes Rs 99.5 crore upfront payment made to DMRC.
Parsvnath has a land bank of 194 million sq ft, of which it is undertaking construction of 80 million sq ft on fast track basis.
To cut debt running into Rs 1,100 crore and meet construction cost, the company has been raising funds through private placement of shares to institutional investors and private equity at project level.
Also last month, Parsvnath Developers had announced that it has raised Rs 270 crore through private placement of shares with institutional investors to fund ongoing projects.
In 2009, the company had raised Rs 168 crore through the QIP route and Rs 190 crore through stake sale at project level.
Parsvnath has a land bank of 194 million sq ft, of which it is undertaking construction of 80 million sq ft on fast track basis.
To cut debt running into Rs 1,100 crore and meet construction cost, the company has been raising funds through private placement of shares to institutional investors and private equity at project level.
Also last month, Parsvnath Developers had announced that it has raised Rs 270 crore through private placement of shares with institutional investors to fund ongoing projects.
In 2009, the company had raised Rs 168 crore through the QIP route and Rs 190 crore through stake sale at project level.
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