Will infuse ₹500 crore of equity capital into 12 ventures
Mumbai-based real estate firm XRBIA Developers, which has till now been focussing on Maharashtra, intends to launch affordable housing projects across India, founder Rahul Nahar told BusinessLine on Friday.
The five-year-old company intends to launch projects in Delhi, Kolkata and Bengaluru, to fulfil its vision of developing ‘100 future-ready cities by 2030’, Nahar said.
He added that the firm isn’t looking to go public for funding purposes.
“We have a great relationship with public sector banks for raising funds,” he said.
XRBIA’s projects are being envisioned as technologically advanced and environment friendly, in accordance with the expectations of the next generation of home owners, Nahar said.
The company has already completed 18 projects with 40,000 houses across Maharashtra. Xrbia builders has achieved the target of selling 2,000 units every month in the beginning of the year ,and has an ambitious target of fulfilling sales worth $1 billion in 2017, Nahar said.
“We are in talk with 12 prospective partners all over India. This year, we will infuse ₹500 crore into these 12 ventures as equity capital. We will enter into partnerships with local companies to fulfil our project targets,” Nahar said.
The real estate business, however, is taking a hit from several quarters, not least of which are the lack of availability of long-term capital and the manual registration process, he added.
The introduction of the Real Estate (Regulation and Development) Act (RERA) could also create a supply-side bottleneck, he feels.
“With the implementation of RERA, the responsibilities of the developers increase, leading to supply-side reduction as well as increase in home prices.”