The Hindu Business Line : Alliance Group raising Rs 600 cr to part fund realty projects

The details
The Alliance Group has a total land bank of 460 acres in Bangalore, Chennai, Coimbatore, Hyderabad and Mysore.
The company has completed a solitary project named ‘10 Downing’ in Bangalore.

Our Bureau

Hyderabad, Dec. 6 Alliance Group, the Bangalore-based realty major with projects worth Rs 4,400 crore under its belt, has decided to raise Rs 600-crore foreign direct investment (FDI) this year, to part fund the projects.

The Group has divested 15-18 per cent stake to Westport Capital, the US-based venture capital firm, in the holding company — Alliance Infrastructure Projects Private Ltd. It is planning to raise funds through loans from banks and venture capital firms as well, Mr Manoj Namburu, Chairman and Managing Director, said. The group has adopted the strategy of creating special purpose vehicles (SPVs) for each of the large projects, and is offering equity to joint venture partners. It has integrated township projects in Bangalore, Chennai and Hyderabad, Mr Namburu told newspersons.

In the Hyderabad project called Inner Circle, where the company expects to infuse Rs 486 crore, the SPV — Buildwell Projects Private Ltd — has given 50 per cent equity to Westport, Mr Namburu said.

In the case of Chennai and Bangalore projects, 30-50 per cent equity has been offered to Westport in the SPVs — Alliance Projects and Alliance Retreat. Both are integrated, mixed purpose township projects, he said.

The Alliance Group has a total land bank of 460 acres in Bangalore, Chennai, Coimbatore, Hyderabad and Mysore, where it is taking up a total of 13 projects.

The company has completed a solitary project named ‘10 Downing’ in Bangalore.

Refusing to divulge more details due to contractual agreements for two months, Mr Namburu said the Hyderabad project, spread over 60 acres on the outskirts of the city, would be formally launched on December 1. It would be completed in 36 months. The price band would be Rs 80 lakh to Rs 2 crore. The process of selecting a contractor was on.

Inner Circle would have 350 villas (2,400 sq.ft-6,000 sq.ft), to be designed by Singapore’s Surbana architects. Each villa would come with an Alliance warranty. A luxury, 110-room, 5-star hotel, restaurants, sports and leisure facilities would be provided.