Real Estate

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 sales advances.
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 months.

Contact: Puravankara Projects Ltd, 130/1, Ulsoor Road, Bangalore, Karnataka 560042. Tel: 080-25599000; Fax: 080-25599350; E-mail: sales@puravankara.com