IREO to pump in Rs 10k cr to build 20,000 houses

Global investment fund IREO today said it would invest Rs 10,000 crore to develop an integrated township with about 20,000 flats in Gurgaon over the next seven to eight years.

IREO, which is also a fully-integrated real estate development company, is planning to launch 10 million sq ft of projects over the 12 months in the northern region of the country.

"The township, Ireo City, will be developed with a very upmarket design, defining a lifestyle with quality. We have earmarked a capital outlay of Rs 10,000 crore to execute the project in the next 7-8 years," IREO Director Varun Khanna told PTI.

The company is planning to construct about 20,000 residential units within the township, which would also comprise hotels, educational institutes, medical facilities and commercial spaces, he added.

When asked about the source of funding for Ireo City, Khanna said: "A portion of the money will come from our private equity fund. We are a zero-debt company, so we have multiple options to access."

To start with, the company today launched a residential complex -- Grand Arch -- inside the township. The complex would house 842 apartments and penthouses and is expected to be ready by 2012.