Arihant to invest Rs 4,000 cr on 15 ongoing housing projects over six years

Real estate firm Arihant Superstructures will invest about Rs 4,000 crore over the next six years on construction of its 15 ongoing projects in Navi Mumbai and Jodhpur, a top company official said.

The Mumbai-based developer has completed around 2.5 million sq ft area across nine projects.

"We are currently developing 15 projects in Navi Mumbai and Jodhpur comprising 12.9 million sq ft area," the company's Chairman and Managing Director Ashok Chhajer told PTI.

The company is developing around 12,000 units in these projects.

"We focus on affordable housing. Out of our total portfolio, 66 per cent is low-cost homes in a price range of Rs 20-50 lakh," he said.

Asked about investment in the ongoing projects, Chhajer said the land cost is already paid while Rs 4,000 crore would be required to complete construction of these 15 projects.

The construction cost would be funded through internal accruals, bank loans and advances from customers.

Arihant is expecting Rs 6,000 crore revenues from these 15 projects over the next six years, he said.

Out of 15 projects, around 10 are in Navi Mumbai and rest in Jodhpur.

Chhajer said the company is concentrating on project execution and delivered about 1,100 flats covering 1 million sq ft area during last fiscal.

This year, the company is targeting delivery of 1.5 million sq ft.

On sales bookings, he said they have improved and the company sold 580 units worth about Rs 200 crore in the first half of this fiscal.

"We are targeting to achieve total sales bookings of 1,500 units having value of about Rs 600 crore," he said.

The company's sales booking were hit last fiscal mainly due to demonetisation and it was able to achieve only Rs 200 crore worth bookings.

Arihant is also looking to develop more projects in Navi Mumbai and Mumbai metropolitan region.

The company achieved a turnover of Rs 186 crore last fiscal and is expecting about 25 per cent growth in 2017-18.