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The booming Indian real estate sector is getting more attention from the multinational investors with Citigroup Property Investors, agreeing to invest Rs 575 crore in a Pune-based real estate project.
The global bank will partner India’s unlisted Gera Developments to develop a residential project in the booming technology hub of Pune in Maharashtra, a statement from Gera said.
The project, which is due to be completed in four years, is to build 600 apartments, a country club and a hotel, Rohit Gera, executive director at Gera Developments said. He declined to disclose investment details.
“This (association with Citigroup) will not be for just this project, the intension is to extend it to a few more projects,” he said. “It is a move that would improve our (privately run) corporate governance by reporting to professionals.”
The Indian real estate sector is witnessing a boom of sorts with demand overtaking the supply. The banking regulator even increased the loan rates to cool down the real estate sector but it is not showing any signs of a slowdown. In fact, the real estate loans disbursement grew by more than 100 per cent in the first quarter of the current fiscal with more growth coming from the smaller cities.
Gera said that many investors had approached the firm for an equity stake but said he would first experience partnerships in projects and if satisfied would then extend them to the firm.
Gera did not give the exact revenue of his company but said it could be around Rs 230 crore this year, given that the firm was constructing about a million square feet in different projects which could be sold at an average price of Rs 2,300 a square foot.
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