Supertech plans university, a township

Out of total investment of Rs 2,000 cr, the company will raise Rs 1,000 cr-Rs 500 cr as loans from banks, Rs 500 cr through private equity

North India-based real estate firm Supertech has chalked out an ambitious growth plan for the next 3 years, wherein it will invest Rs 2,000 crore for expansion of its existing business, launch of new projects and venturing into a new segment of education.

It plans to set up its own University in Uttrakhand by next year. The company will also come up with its first township in Gurgaon by June this year. Besides, it has set a target of Rs 10,000 crore turnover in the same period from the existing Rs 2,500 crore, Supertech’s chairman and managing director RK Arora told Business Standard.

The Supertech University will be set up in Kumaon region in Uttrakhand. The land acquisition process for the same has already started and the company plans to start the first session in 2014. The university will be run by Supertech Foundation and will offer courses in Law, business management and engineering.

Out of the total investment of Rs 2,000 crore, the company will raise Rs 1,000 crore—Rs 500 crore as loans from banks and Rs 500 crore through private equity, Arora said. It is in advanced stages of discussion for raising the amount through private equity.

For the first time, Supertech will launch a township, which includes commercial malls, school and hospital among other things, in Gurgaon. The project will be spread over an area of 100 acre. The company is in the process of acquiring licence for the land while the launch is expected to be done around May or June this year. The township will be ready in the next 3 years, he added.

The company has about 70 million sqft of area across 34 projects, which is under construction currently. Out of this, 20 million sqft will be completed and delivered this year.

To tap the demand of overseas investors, it plans to go South, starting with Bangalore for a luxury project. The project, estimated to be around Rs 100 crore, will be a 500-flat apartment at a price of Rs 1 crore and above, Arora said. It has already tied up the land for the project and the construction will begin soon. Based on the response of the Bangalore project, the company will look to launch its projects in Hyderabad and Chennai and may also expand further in Bangalore.

There has been demand for properties in South from Non-resident Indians (NRIs) in the Middle East, the US and other countries. Supertech has international marketing and sales operation overseas. Currently, the company mainly has projects in Delhi, NCR and cities such as Meerut, Moradabad, Haridwar and Rudrapur.