Century to raise Rs 700 cr; mulls public offer

Century Real Estate Holdings, the realty development arm of the three-decade old Century Group, is looking to raise Rs 700 crore to expand its development initiatives. Sources close to the company detail that Century is planning to tap capital markets to raise resources in addition to the option of going to private equity players.

Century Group, owned by real estate veteran Dayanand Pai, best known as a land bank aggregator in the real estate market, is said to have over 3,000 acres of land in and around Bangalore city alone. The group during 2007 diversified into development of projects and has delivered residential projects covering 1.5 million square feet in an effort to move up the value chain and derive more value for its land bank.

“We are developing another 8 million square feet spread over 343 acres valued at Rs 1,200 crore through 12 special purpose vehicles. In addition to this, we are bringing in another 800 acres of our land bank under the development arm for which we will require Rs 350 crore to make it development ready,” a senior source in the company told Business Standard. However, an official spokesperson declined to comment on fund raising plans.

Century Group has been indirectly involved in project development by aligning with almost all real estate developers either through joint ventures or through joint development through which it has developed 8 million square feet. “We are developing an additional 20 million square feet through this route. Plans are on to integrate these entire projects under the development arm, which will take up the land asset base to 3,400 acre,” the source detailed.

Century will require Rs 250 crore to make residual payments for land owners and in addition to this, it has debt of Rs 150 crore. “Our total fund raising of Rs 700 crore will be used for these,” the company official added.

Industry sources further added that Century Group is also eyeing part development of Bangalore Palace Grounds.