Omaxe realises Rs500 crore from NCR sales

Omaxe Ltd, the New Delhi-based real estate developer, has raked in `500 crore from sales in the National Capital Region (NCR) and Lucknow in the first six months of this fiscal.

The realisations have helped it to cut debt of  Rs210 crore. The developer is now planning new launches in Lucknow and Chandigarh.

In the NCR region and Lucknow, Omaxe is currently developing nine properties which are at various stages and is eyeing sales worth Rs3,000 crore from these.

“In the half year ended September, around Rs500 crore worth sales have come from these projects but it will be accounted in revenue based on percentage completion. The projects in NCR are in advance stage of completion and delivery is expected by middle of 2011,” said a company spokesperson.

“Most of the sales from these projects have already been achieved in previous years as many of these were launched in 2008. We have estimated sales of Rs3,000 crore from the nine projects. The actual sales are in line with our expectations. In Lucknow we have already delivered two projects in the past and the latest one launched during May 2010 would be completed by middle of 2014,” said the Omaxe representative.

The realisations have helped debt abatement and the company is looking at project-level private equity deals. “Realisations have definitely improved cash-flow position and we have repaid close to Rs210 crore of debt during the six months ended September. Negotiations are on for private equity at a few of our township projects but it typically takes six to eight months before such transactions materialise,” said the spokesperson.

The company has a debt liability of Rs1,640 crore and the scheduled repayment in the next six months is Rs350 crore. Among the premium projects in the NCR is Forest Spa project, built at a cost of Rs2,000 per  square feet, having an average realisation of around Rs6,000.