HDIL will build a 100 acre township in Noida, on the outskirts of Delhi—its first project away from its home turf, Mumbai.
• The project is crucial for the developer which hasn’t launched a single project since last April and requires the much-needed cash flow from fresh projects. The Noida project will kick off in the next 8-10 days, as the firm has secured the required approvals.
• It will also soon launch a residential project in Mumbai’s Ghatkopar suburb which was delayed on account of approvals. In recent times, the company has also spoken about divesting some assets outside Mumbai to exit non-core assets.
• It owns about 170 acres in and around Kochi and another 100 acres in Hyderabad.
• HDIL badly needs fresh projects to generate cash flows to repay debt, which stood at about Rs.4,000 crore as of December. However, given policy issues in overall Mumbai real estate and specifically the airport project, work on the company’s ongoing projects has been slow over the last two-three quarters and the deliveries have been delayed. Thus the company’s move to enter other regions will help it to address the slowdown in Mumbai’s real estate market.
....more info
• The project is crucial for the developer which hasn’t launched a single project since last April and requires the much-needed cash flow from fresh projects. The Noida project will kick off in the next 8-10 days, as the firm has secured the required approvals.
• It will also soon launch a residential project in Mumbai’s Ghatkopar suburb which was delayed on account of approvals. In recent times, the company has also spoken about divesting some assets outside Mumbai to exit non-core assets.
• It owns about 170 acres in and around Kochi and another 100 acres in Hyderabad.
• HDIL badly needs fresh projects to generate cash flows to repay debt, which stood at about Rs.4,000 crore as of December. However, given policy issues in overall Mumbai real estate and specifically the airport project, work on the company’s ongoing projects has been slow over the last two-three quarters and the deliveries have been delayed. Thus the company’s move to enter other regions will help it to address the slowdown in Mumbai’s real estate market.
....more info