Janapriya to raise Rs 200cr through private equity

Hyderabad-based real estate developer, Janapriya Engineers Syndicate (JES), is in an advanced stage of discussions with a private equity firm for divesting 25 per cent of its stake for about Rs 200 crore.

"The discussions in this regard are in the final stages," JES chairman and managing director, K Ravinder Reddy, told Business Standard, adding that his company was raising the money mainly for mechanising the construction activity so as to improve quality and ensure timely completion of the projects.

He said the company, which has been involved in the construction of residential apartments and development of commercial properties, was now considering to set up two special economic zones (SEZs) in Hyderabad.

According to Reddy, JES has a 25-acre site at Attapur and 45 acres of land at Kapra near the city where it wants to set up information technology SEZs. However, the company is yet to apply to the government for sanction of the SEZs.

Meanwhile, the company is going for a change in its brand image.

"So far, we have been a provider of need-based housing. Now, we are offering affordable luxury houses with ample amenities as the affordability of salaried class, to whom we have been catering to, has increased with the rise in salaries over a period of time. Accordingly, our logo has been changed," Reddy said.

JES new projects in the city include a Rs 1,800-crore apartment complex near Chandanagar, Rs 180 crore Janapriya Utopia at Attapur, Rs 190 crore Janapriya Arcade near Alwal and Rs 325 crore Janapriya Metropolis near Balanagar.

For the Chandanagar project, Reddy said, the company was setting up a 50:50 joint venture with a foreign firm that has a presence in India. The construction of the 5.6 million sft project consisting of 4,000 apartments in 10 blocks spread over an area of 44 acres would start from next month and is expected to be completed over a period of 40 months.

The company is also starting the construction of a Rs 108-crore apartments complex comprising 600 flats in Bangalore next month.