Marathon Group and Adani Realty joint venture (JV) has secured a Rs 500 crore funding from HDFC to develop the second phase of their luxury project in south Mumbai. The JV is eyeing a revenue of around Rs 2,500 crore from this project.
The residential project – Monte South at Byculla's second phase – was launched by the developers a fortnight ago. The joint venture between Marathon Group and Adani Realty is of around Rs 2,000 crore.
The first phase of the project, spread across 12 acres of erstwhile Khatau Mills Compound, is nearing completion and construction of the subsequent high-rise will commence in the coming months. As per the plans, there will be four high rise buildings on this plot in south Mumbai.
Khatau Mills land is one of the last large land parcels remaining in south Mumbai.
The Monte South luxury residential project has inventory worth about Rs 2,500 crore. "This estimate includes the present under construction tower as well as the one launched," said a source.
"(Khatau Mills) land is already acquired, so the fund has not been raised for this purpose. For construction related expenses it will be borne out of internal accruals or bookings made, and for gap funding, a line is available with HDFC," said Mayur Shah, managing director of Marathon Group.
Recently, HDFC has sanctioned a Rs 500 crore loan for the second building that will soon come up. An equal amount was utilised by the developers for the construction of the first tower too and the same was approved around four years ago by HDFC.
According to the JV partners, the launch of the second 60 storied tower will have over 150 apartments for booking at the time of launch itself.
The project launch has come at a time when the market sentiment has remained subdued for luxury housing. However, Shah is optimistic about the timing of the launch of the second phase as he believes that the real estate market sentiments are beginning to look up, especially with the recent reduction in Goods and Services Tax for under-construction homes.
All the decisions for Monte South project are being taken jointly by both the developers – Marathon Group and Adani Realty -- but the former is handling construction and day-to-day affairs of the project.
SECURING FINANCE
- Rs 2,000 cr – Value of the joint venture between Marathon Group and Adani Realty
- Rs 2,500 cr – Value of The Monte South luxury residential project’s inventory
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