Sobha eyes Gurgaon project launch by March next

Sobha Developers, the Bangalore-based real estate company, is planning to launch the first phase of its Gurgaon project by the end of this fiscal. It had put the project on back burner due to recession in 2008.

Sobha had formed a joint venture with QVC Realty and a local developer, Chintels India, to develop 192 acres of land in Gurgaon with a developable area of 5.7 million square feet (msf). Chintels India was responsible for providing the land for the development.

J C Sharma, managing director, Sobha Developers, said, “The consortium would develop integrated township in sectors 106 and 109 on a 153 acres, which would be launched first. We have already appointed a regional head and are awaiting a few approvals. A group housing project will be on 40 acres in sectors 108 and 109 and the present land is 192 acres.”

This is the largest project which Sobha would be executing as a lead developer. It holds around 60% stake in the project, which was earlier pegged at Rs2,000 crore.

QVC Realty, a real estate venture floated by Prakash Gurubaxani, was funded by IL&FS Investment Managers Ltd’s first fund, which had raised $525 million in April 2006. Sharma declined to divulge details regarding funding and exact launch area.

Sobha plans to launch approximately 13 msf development by the end of the year, of which around 5.7 msf would happen in the Gurgaon project. It would be developed in phases and would take 7-10 years for complete development.

Analyst tracking the company told DNA, “The project is still quite far off and they haven’t yet disclosed how they would raise money for the project. Also, their execution has been slow this year, so we will have to wait till the end of the fiscal to see if they are running on track.”