News & Views on Indian Real Estate

Wednesday, September 03, 2008

Purvankara Arm To Raise Rs 750 Crore For Affordable Housing Projects

Provident Housing and Infrastructure, the wholly owned subsidiary of Bangalore-based real estate company, Purvankara Projects, is planning to raise Rs 750 crore through private equity funds. The funds would be used to acquire land for its affordable housing projects. "Total project cost is Rs 8, 000 crore. Of this, Rs 750 crore will be raised through private equity funding at the project level. While one is an Asia-based fund, the remaining three are from the US," a source close to the development said. The remaining Rs 7, 250 crore would be raised through a mix of internal accruals, debt and customer advances. He added that the company could also dilute between 30 and 40 percent stake in each of the affordable housing projects.