M3M launches housing project worth Rs.1,100cr

M3M, a renowned real estate developer, in a recent deal has bought 28 acres of land from DLF in Gurgaon involving an investment of Rs 440cr. The land parcel, which is located in sector 70A on Gurgaon Course (Extn)-Southern Peripheral Road (SPR), is facing Aravalis and is well connected with the National Highway-8. The buyer is building a premium residential project on the land entailing an investment of Rs 1,100cr inclusive of the deal value.

According to the President-Finance & Strategy, the company currently owns land bank of about 600 acres and is working on five projects. Around Rs 1,500cr will be invested over the next couple of years, which will be partly financed by subsequent sales from the project and partly by construction linked bank finance. It has already tied up with the banks offering loans at 12-12.5 percent interest rate. It is taking loan only for construction and not for land aggregation and is currently selling off some non-core assets like SEZ and IT parks for cash generation, he concluded.