Green Tree Homes to raise Rs 50 cr PE fund

Residential real estate developer Green Tree Homes & Ventures Pvt Ltd is planning to raise around Rs 50 crore from private equity firms to support its ongoing products. The company is in talks with various private equity players through a model in which it would share revenue through a common escrow account.

"We have five ongoing projects which are designed to develop a total of 3 mn sft in and around Chennai. While the projects would be funded through internal accruals and sales revenue, we are also in talks with PE firms for project funding," said Pon Ravichandran, director, Green Tree Homes & Ventures Pvt Ltd.
 

Of the five projects, two are already designed as projects using prefab technology. The company is also looking at the possibility of using the technology in a budget apartment township of a total expected project sales value of Rs 400 crore, coming up in Tamil Nadu.

It has floated a new company- Town & Tower Systems Pvt Ltd - with plans to produce and market prefab building components for itself and other real estate development firms.

"We are setting up a manufacturing facility with a capacity of 5 million sft every year in Chennai to serve the market. The prefab construction industry is growing fast and we think that the demand would be around 50 million sft per annum in the next five years," he said.

The new venture would involve an investment of Rs 50 crore. The company would also be looking at raising funds for this later, he added.