TARC to demolish central Delhi mall for residential project, invest Rs 700 crore
Bain Capital-funded property developer TARC, which recently raised Rs 1,330 crore from the global private-equity major, plans to demolish a mall in central Delhi to develop 1.6 million sq ft of premium homes at an investment of Rs 700 crore, CEO & MD Amar Sarin told ET.
Mumbai-listed TARC had earlier sold some of its non-core land assets to Blackstone and ESR to deleverage its balance sheet, seeking to focus instead on residential real estate development.
“We have land parcels at some of the most prime locations of Delhi and Gurgaon, and this year, we plan to launch at least 5 projects. We will have two projects in Kapashera near the Delhi airport, one in Kirti Nagar in Central Delhi, one in sector 63 Gurgaon and another one in Hauz Khas,” Sarin said.
The group plans to invest close to Rs 1,700 crore across these projects.
“We will have one residential project in Kapashera on a 3-acre land parcel with 200 luxury apartments on sale. The project, with a top line of Rs 900 crore, will require Rs 200 crore for construction, “Sarin said.
The company will have another 200-key hotel in Rajouri near the Delhi airport on a 7-acre plot of land where it will develop serviced apartments and managed residences as well.
“Our biggest project for the year would be one in Kirti Nagar, where we are demolishing a mall and have taken approval for a residential project. We will invest another Rs 700 crore in the project, which will have three residential towers with 450 units,” said Sarin.
The company will also develop independent floors in Gurgaon and has taken the necessary approvals for it. It will be developed on a 7-acre land parcel.
The company has used funds infused by Bain Capital in the form of secured long-term NCDs to clear the existing debt and a part of it will be used to start the planned projects.
The transaction is one of the largest fund raises by a real estate company in North India in recent times.
The company had recently sold its warehousing asset in North Delhi to a Blackstone-affiliate fund for Rs 295 crore.