M3M, a real estate developer, has bought 28 acres of land in Gurgaon from the DLF group. The deal size is worth Rs 440 crore.
The land is located in sector 70A on Gurgaon Course (Extn)-Southern Peripheral Road (SPR), looking the Aravalis and connecting with the SPR to National Highway-8.
M3M plans to build a premium residential project on the land. The company has budgeted a total investment of Rs 1,100 crore for this project, inclusive of the deal value.
“Our present land bank is over 600 acres and we are currently working on five projects. Around Rs 1,500 crore will be invested over the next few years, which will be partly financed by subsequent sales from the project and partly by construction linked bank finance,” Mr Arvind Parakh, President-Finance & Strategy, M3M, told Business Line.
The company has already tied up with the banks, who are offering them loans at 12-12.5 per cent interest rate.
“We will be taking loan, only for construction and not for land aggregation. We will also be selling off some non-core assets like SEZ and IT parks for cash generation’’, Mr Parakh said.