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Real estate company Parsvnath Developers said on Tuesday it will pay this month the next instalment of about Rs 340 crore due to Rail Land Development Authority (RLDA) for the mega land deal clinched late last year.
Parsvnath said it has achieved financial closure for this amount and intends to hand over the payment “next week”.
In November 2010, the company had emerged the highest bidder for developing the 38-acre prime plot, in an auction by RLDA. Parsvnath offered to pay Rs 1,651.5 crore for the land parcel located in a key area in the capital – Sarai Rohilla.
“As per the terms of payment, we have already paid 2 per cent of the total amount, and will have to pay another 18 per cent to RLDA and the consultant by March 31, 2011. We are ready to make the payment and expect to hand over the amount to them next week, even before the deadline,” the Parsvnath Chairman, Mr Pradeep Jain, told Business Line .
The company had earlier roped in Red Fort Capital as partner in the project. “We have an FDI partner and we are infusing Rs 110 crore for this round of payment, and they are pooling in the balance,” he said.
Once this round of payment is over, Parsvnath can breathe easy as it will enjoy an 18-month moratorium. The remaining amount has to be paid thereafter over the next four years. In effect, the amount has to be paid in about five-and-a-half years.
“We do not foresee any debt for this project. However on the conservative side, we have opened up lines of communication with various financial institutions, just in case we need some funds for construction purposes. However there is no decision on this as of now,” he said.
Parsvnath will have majority stake in the proposed project. From the total 5.5 million square feet (msf) of saleable area, the developer is required to build and hand over 0.5 msf for housing and other facilities for Railways. Close to 4.5 msf will be premium luxury housing and, the rest for commercial and office space.
“The site office is already built. We have roped in consultants and the master planning and designing is on. In the next 30 days, we should be able to submit the building plans before the local authorities for approval,” Mr Jain said.
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