Puravankara enters low-cost housing
Puravankara Projects Ltd, a leading real estate developer of Bangalore, has announced its foray into the low-cost affordable housing market in India. The
houses will be built by Provident Housing and Infrastructure Ltd, a 100 per cent
owned subsidiary of Puravankara. These will be prices in the range of Rs 10-20
lakh and target the middle class and first-time home buyers.
Ravi Ramu, Director, Puravankara, said, "It is a large initiative from us.
Provident will be an independent entity with separate offices, targets,
operations, cash flow streams and budgets. The acquisition of land is done on
the outskirts of Tier-I and Tier-II cities."
Phase-I of the project will focus on the southern cities of Bangalore, Chennai,
Hyderabad, Mysore and Coimbatore. It will involve the construction of 64,500
houses over an area of 59,800,000 sq. ft within two years. The total cost of
this project s estimated at Rs 8,000 crore which includes Rs 1,500 crore for
land acquisition and Rs 6,500 crore for project construction. While funding for
the land will be through internal accruals and private equity, funding for the
project itself will be through internal accruals, institutional funding and
Phase-II of the low-cost housing project will spread to Cochin, Pune, Jaipur,
New Delhi, Nagpur and Kolkata.
According to Jayakar Jerome, Managing Director, Provident Housing and
Infrastructure Ltd, the average FSI allotted for the project will be 2. The
flats will have area ranging from 750 to 1,000 sq. ft. The first project in
North Bangalore comprising 5,100 homes will be ready for launch within three
Contact: Puravankara Projects Ltd, 130/1, Ulsoor Road, Bangalore,
Karnataka 560042. Tel: 080-25599000; Fax: 080-25599350; E-mail: email@example.com
[August 18-24, 2008]