GURGAON: Real estate firm M3M on Tuesday said it has bought 28 acres 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 acres 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 accruals and advances from customers. Gurgaon-based M3M Ltd, which has over 600 acres of land bank, claimed that it was a debt-free company.
It is building a luxury project -- M3M Golf Estate -- on 75 acres of land in Gurgaon and is expecting a revenue of US $1.5 billion from it. The company has launched more than 10 million sq ft of area worth US $2.5 billion in the past one and a half years.
DLF has been selling its non-core assets such as hotel plots for the past couple of years to cut debt that stood at Rs 22,519 crore at the end of the 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.
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