HDIL sells 0.4 msf in Goregaon project in 2 days

Housing Development & Infrastructure Ltd (HDIL), the fourth-largest realtor according to market capitalisation, has sold 0.4 million square feet (msf) in two days in the first phase of The Meadows, its project in Sidharth Nagar, Goregaon (west).

The total saleable area of the phase I, which was launched on Friday, is close to 2 msf. HDIL had quoted a base price of Rs 7,740 per square feet for the residential project during the launch and has now increased it by 5% to Rs 8,100 per sq ft.

The total saleable area of the project is approximately 4.6 msf. HDIL has already received down payment of 20% of its apartment sale price, which is close to Rs 15-20 lakh.

Sources said the project is being executed under HDIL’s 100% subsidiary Guru Ashish Developers Private Ltd.

An analyst tracking the company said, “They have launched the project at competitive price point with discounts ranging between 10% and 15% from the market value and has already sold one-fourth of the project.”

HDIL, at present, has 17 ongoing projects aggregating to 60.17 msf, of which 46.59 msf is from slum redevelopment projects.
HDIL officials had earlier told DNA, “The Ghatkopar and Goregaon developments will bring in around Rs 600 crore (between the two) to the company’s topline.”

The company has project launch visibility of Kandivili of 3 msf, Ghatkopar of 0.5 msf and rental projects in Virar. It has also given sales guidance of 5-6 msf in the current fiscal through TDR, which constitutes 84% of its business revenues. It has a holdover of 0.5 msf from the last quarter.

HDIL is awaiting the BMC approval for water supply at its defunct automobile plot in Kurla which is expected to come through in three months.

HDIL is also planning to launch phase II of the Mumbai International Airport Ltd (MIAL) project within 3-4 months which would rehabilitate around 25,000 families. Analysts said that the management has indicated that it is trying to chalk out a plan if the residents can be rehabilitated at Dahisar on the land provided by the government.

It has repayment obligation of Rs 600-700 crore on accounts of land acquisition for the MIAL project, which it expects to fund through debt and internal accruals.

Siddharth Bothra, analyst at Motilal Oswal Securities, wrote to clients on 28 May, “The management indicated that aggregate debt would rise further in the first quarter of the current fiscal as the company would need to raise debt to partly fund its land payments of Rs 600-700 crore for the remaining land parcels with regard to the MIAL project. Increasing leverage of HDIL is a concern.”