Architect Hafeez Contractor looks to raise Rs500 crore for expansion

Hafeez Contractor, the designer of iconic buildings such as the 23-Marina Towers in Dubai and Infosys Technologies’ IT Parks across the country and China, is looking to raise Rs500 crore by diluting 40% stake in his firm Architect Hafeez Contractor.

The Mumbai-based architect, who has been running his own practice since 1982, wants to expand his business and take it to the next level.

The 61-year-old, who has designed almost every format of real estate from residential townships to commercial spaces, hotels, hospitals and retail malls, will open more offices in the country and abroad.

“I was looking at somebody who is interested in making an investment in the firm for its expansion into a larger firm. We are planning to open offices in New Delhi, Hyderabad, metros in the north and east part of the country which is our present line of focus. We also want to go and open offices abroad and bring in better talent from the international fraternity to work with us and accommodate them in flats. This entire expansion infusion will be on the equity side,” Contractor said.

The firm, which has been talking to international banks and private equity firms to raise money, has not yet found the partner.

Contractor, who graduated from Columbia University in New York on a Tata Scholarship, says, “I am not selling off the business. I am just trying to get a private equity fund to come in. We will not sell more than 40%. Also, we received very good response, but they did not meet our expectation, and there is no point in doing a deal at a lower valuation because it would not make any sense with regards to the growth that we are eyeing.”

The Mumbai-headquartered firm now employs 350 senior associates, architects, interior designers, draftsmen, civil engineering team and architectural support staff.

As per the Council of Architecture’s stipulation, an architect can charge a maximum 4% of the project cost as his fees.