SARE buys 100 acres of land in Navi Mumbai from Silver Oak

Published: June 29, 2011 at 2:08 PM | Author: Administrator
News Source: Indian Realty News

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Real estate investment and development firm South Asian Real Estate has closed a deal for buying a 100-acre piece of land in Navi Mumbai from Mumbai-based developer Silver Oak. SARE and Silver Oak have set up a joint venture company, in which SARE will have a majority stake. The joint venture will develop an integrated township on the 100 acres, which will include mid-income residential development, mainly low-rise. The cost of the land parcel in Panvel is between Rs 150-200 crore, said a source close to the development, who did not wish to be named.

"The total cost of the project will be $350 million (Rs 1,575 crore) including construction expenditure and land acquisition. It will be financed through combination of customer advances, equity and debt," said the source. SARE will infuse Rs 75 crore as equity contribution. Consulting firm Ernst & Young is running the transaction.

The joint venture company is expected to start work on the township in three-six months and is expected to take 5-7 years to finish the project. Many real estate developers are showing interest in projects around Navi Mumbai in the backdrop of several infrastructure initiatives being undertaken or announced by the government, including an international airport here.

Since 2006, SARE has raised Rs 2,000 crore and currently has around 40 million sq ft of property under construction through 8 projects across India. The Navi Mumbai integrated township will be the company’s second largest project in the country after its 112-acre township project at Old Mahabalipuram Road in Chennai. The company is looking at investing in a project spread over Rs 50-75 acres every quarter hereon, said another source.