Phoenix group lines up Rs 2,000 cr

City-headquartered Phoenix group, an infrastructure company, has lined up Rs 2,000 crore to be invested over the next five years.

“We will invest Rs 2,000 crore in the next five years. Of this, 50 per cent of the money will be raised from private equity firms,” said Gopikrishna Patibanda, managing director of Phoenix group. The company has tied up with six private equity firms including Monsoon Capital and Catalyst Private Equity.

Phoenix is working on 5-6 residential projects (each between Rs 300 crore and Rs 400 crore) here. It is developing a Rs 350-crore Golf Edge, a 30-storey residential twin towers with 497-apartments and a built-up space of one million sft, at Gachibowli.

 

“Of the Rs 350 crore investment, the debt is higher than equity. We have raised 50 per cent of the equity from Monsoon Capital, a US-based hedge fund,” he added. Golf Edge is priced at Rs 6,000 per sft and the apartments cost between Rs 60 lakh and Rs 2 crore. “We have already seen 30 per cent booking in Golf Edge,” he added.

According to market estimates, 2,000 apartments are currently being developed in the area and there is a demand for more than 50,000 apartments. The company is targeting the IT segment. Around 100,000 people are currently working in that area and it would grow up to 250,000 to 300,000 in the next few years.

Golf Edge, which is coming up in three phases, is likely to be ready by March 2014. The residential complex would also have a five-star hotel under the Intercontinental brand. For this, it has tied up with Duet hotel and Intercontinental group, he said.

“We are working on various projects in Chennai and Hyderabad, and will expand to Tier II and Tier III cities in AP and Tamil Nadu in the coming years,” he said. The company has developed 5 million sft in the last nine years.