Infrastructure major Nagarjuna Construction Company (NCC) is likely to raise funds from banks or institutions to complete its property development project in Dubai.
The company has been working on building a 440-apartment project in Dubai. With the realty market going through turbulence and prospective buyers seeking some progress in the project before paying advances, the company is planning to raise funds from the market to take the project forward.
“We had to go in for some design modifications considering the current market conditions. Currently, we are planning to sell the property for 820 dirhams per sq ft. The Tower I will have about 10 floors. We are talking to institutions for funding the project,” NCC’s executive vice-president (finance) Y D Murthy told DNA.
Though Murthy did not specify the quantum of funds, sources said that the company was in talks to raise about Rs 100 crore.The project was designed with an outlay of Rs 700 crore. NCC was planning to build another tower too with an outlay of Rs 800 crore.
However, prices of property in Dubai have crashed significantly — from about 1,100 dirhams a sq ft to about 800-850 dirhams a sq ft.The company is also pinning hopes on a project in Oman, to build a coastal highway on EPC basis. To be completed in 30 months, the project is estimated to cost about Rs 1,800 crore. “We have received the LoI and we will commence the formalities for the project soon,” Murthy said.
NCC is also at an advanced stage of bagging yet another EPC project in Oman. This project, to build an airport, is estimated to cost about $700 million, or Rs 3,250 crore.
However, Murthy refused to comment on the airport project. “We can confirm to you that the coastal highway project is confirmed so far. We can’t talk about the airport project,” he said.
NCC has secured orders worth over Rs 5,300 crore in the first half of this financial year, and had an order book of about Rs 14,266 crore.While buildings constitute about 27% of the order book, international projects account for about 19%. Water and irrigation have a share of 17% and 10% respectively. Roads and electrical have a share of 5% each.
“By the end of this year, we are likely to surpass the targeted order book of Rs 15,000 crore,” Murthy said.
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