Vijay Khetan Group has acquired a distressed land asset worth ₹90 crore in suburban Andheri and intends to develop a residential complex with a total build up of 5-lakh square feet. The realty firm intends to invest about ₹250-300 crore to develop the land parcel.

The group, a specialist in acquisition of distressed land assets, has bought the three-acre land parcel for nearly half the market price. The land parcel was owned by a Parsi family, said Anuj Khetan, Director, Vijay Khetan Group, confirming the development. “We are planning to develop an upscale residential complex with all modern amenities. The work is expected to start in the next few months, and we expect a turnover of ₹600-700 crore on completion,” Khetan added. The residential project would be completed in 36 months on receipt of approvals. The group has an asset bank comprising land and properties worth about ₹2,500 crore in Mumbai.

The Group, which operates through its flagship company Krishna Developers, is also close to acquiring another land parcel, which has a development potential of about 3 lakh square feet. The deal is expected to be closed in a “month or two”.

“The acquisition of this land parcel, which is in the eastern suburbs, will follow the buyout of a distressed firm,” Khetan said, the legal due-diligence process is currently on.

He, however, did not disclose the details of the project stating a non-disclosure agreement.

The group is also raising ₹1,500 crore from private equity funds and institutional investors, which would be used mainly to buy distressed land assets. The fund-raising would be completed before the end of this financial year.

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