M3M buys 28 acre land in Gurgaon from DLF for Rs 440cr

Real estate firm M3M today said it has bought 28 acre of prime land in Gurgaon from the country's largest developer DLF for Rs 440 crore and will invest another about Rs 660 crore to build a housing project on it. "We have purchased 28 acre of land from DLF in Gurgaon where the company will be developing a residential project. We will soon launch this project," M3M Finance (HEAD) Gaurav Jain told reporters here. He said the company has licences to start construction on this project and would be developing about 1,700 housing units in this project. Asked about the total project cost, Jain said: "The total investment would be about Rs 1,100 crore to develop this project that includes the land cost of Rs 440 crore". The project cost would be funded through internal accrual and advances from customers. Gurgaon-based M3M Ltd, which has over 600 acres of land bank, claimed that it is debt-free company. It is building a luxury project - M3M Golf Estate - on 75 acre of land in Gurgaon and is expecting revenue of $ 1.5 billion from it. The company has launched more than 10 million sq ft of area worth $ 2.5 billion in last one and a half years. DLF has been selling its non-core assets such as hotel plots since last couple of years to cut debt that stood at Rs 22,519 crore at the end of September quarter. It had raised Rs 3,480 crore from sale of non-core assets till the second quarter of this fiscal. The plan is to raise a total of Rs 10,000 crore from this process over the next few years. Last month, DLF and Hubtown sold an IT SEZ in Pune to private equity firm Blackstone for Rs 810 crore. DLF and Hubtown held 67 per cent and 33 per cent equity shares in the SEZ, respectively. DLF is in the process of selling its hospitality venture Amanresorts, which it had acquired in 2007 for $ 400 million. The company is expecting about Rs 2,500 crore from the deal. source:http://economictimes.indiatimes.com/markets/real-estate/m3m-buys-28-acre-land-in-gurgaon-from-dlf-for-rs-440cr/articleshow/11436879.cms