Realty firm starts cheap housing project

Housing Development and Infrastructure Limited (HDIL), the Mumbai-based realty firm, has acquired three big projects, including 400 acres in Boisar for an affordable township project,  according to people familiar with the development.

It acquired 67% stake in Lakshariya Construction, a firm undertaking redevelopment project in Malvani area at Malad.

The project, at present, has approximately 25,000 families under rehabilitation. The total saleable area is around 25-28 mnsft. It has also acquired development rights for SVP Nagar at Andheri (West) slum rehabilitation development. Approximately 98 buildings are under development in this area and the project will entail a saleable component of 4 mnsft. HDIL is planning to start the project construction in next six months.

HDIL expects to launch the affordable township project in six months.
The total investment incurred by the company on the three projects is Rs 900 crore, which has been generated through internal accruals and cash in books.

The company declined to comment on the plan saying it is in the silent period, or the period mandated by the capital market regulator during which they must abstain from making public their business plans and outlook, typically in the run up to earnings announcements.

HDIL recently sold off the commercial component of  its Popular car Bazaar land parcel at Andheri east to Kanakia Spaces and also its Sidhartha Nagar project to a consortium led by Kalpataru.

On Friday, the HDIL stock closed at Rs139.85 a share, down 10.06% on the BSE. It hit a 52-week low at Rs137.50 during the day’s trading.