PE fund Brick Eagle buys budget housing project for Rs 300 crore

Plans to give delivery of 500 houses which will commence from April 2015

Private Equity fund manager Brick Eagle has acquired an affordable housing project in Karjat on the outskirts of Mumbai for Rs 300 crore from its owner, Eredene Capital. The consideration involves liabilities of the project to the tune of Rs 250 crore.

Though the project Tanaji Malusare City was launched in 2008, it got delayed by over five years due to shareholders dispute and court injunction. The stalling of the project left 3600 home buyers in lurch who paid for their apartments.

Now, Brick Eagle is planning to complete the apartments in the next 24 months and build another 1000 units, which will also have mid income housing units and retail component to cross subsidize the project. Brick Eagle is looking at returns of over 25 per cent on its investment.

The fund plans to give delivery of 500 houses to commence from April 2015 and the township will be developed by Sheltrex Developers, which is incubated by Brick Eagle.

"We are evaluating about prices to be charges and we will come out with the policy. But the buyers will get the houses half the prices at which they get them in the market," said Rajesh Krishnan, CEO and founder, Brick Eagle.

The project will have apartments of 170 sq ft to 700 sq ft and prices vary from Rs 10 lakh to Rs 50 lakh per apartment.