The Hindu Business Line : Golden Gate investing Rs 500 cr in township

Hyderabad, Nov. 14 Real estate firm Golden Gate on Friday announced plans to develop a Rs 500-crore integrated township near here with a focus on affordable housing.

The Hyderabad-based company, which is executing another project in Bangalore, plans to set up similar townships in about 10 cities in south India.

Addressing a press conference here, the Managing Director of Golden Gate Properties, Mr K. Pratap, said that the company has tied up its finances and this includes investments of Rs 300 crore from Deutsche Bank and Citibank.

The company had launched its first commune project in Bangalore in August wherein phase one will have 324 units, which were sold out in 60 days despite signs of slowdown, he said.

The commune, Mr Pratap said, will be a self-contained township to be developed at Tellapur close to the Gachi Bowli IT hub near Hyderabad. It will host about 3,500 units with the price starting from Rs 19.9 lakh and offering two and three bedroom housing units spread over 990-1,490 sqft.

Referring to the company’s expansion plans, Mr Pratap said plans are on to set up similar projects in 10 cities in the south, beginning with Chennai, and followed by Vizag, Vijayawada, Mysore, Coimbatore, Cochin and others.

“It took us about four years to master the art of building affordable housing. This will enable us to attract middle-income group buyers. Interestingly, there is no slowdown in lending for below Rs 30-lakh buyers whom we are targeting as it comes under priority sector,” the Managing Director said.

“Most of the real state companies are now looking at addressing the affordable housing market from the earlier focus on luxury segment a couple of years ago. We believe this trend will indirectly propel the demand in a slowing sector,” Mr Pratap said.

The company has created a land bank of about 100 acres in Hyderabad, 300 acres in Bangalore. It also has land bank in other cities, he said. Last fiscal, the company closed with revenues of Rs 400 crore, said the MD of Golden Gate.

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