Parsvnath Developers might raise money through FDI for two projects in New Delhi
Realty firm Parsvnath Developers are contemplating about raising funds for their two commercial projects in the national capital via the FDI route. Ever since real estate got a green signal to raise funds via FDI (Foreign Direct Investment) which was declared in the current budget, many developers have breathed a sigh of relief.
At an investment of about Rs 600 crore, the company is developing a commercial project on Kasturba Gandhi Marg near Connaught Place and a shopping mall at Rohini in New Delhi. The company would also explore listing of about 12 Delhi Metro malls through Real Estate Investment Trusts (REITs). Since the REITs will receive long term capital gains tax exemption, the real estate industry is expecting that the real estate investors will accept it as a great investment option.
Parsvnath Developers Chairman Pradeep Jain stated that with the government relaxing FDI rules in real estate, the company’s two commercial projects in Delhi’s K.G. Marg and Rohini will become FDI compliant. The company will explore the option of raising foreign funds in these two projects.
Jain also mentioned that if the investment proposals are attractive, then the company will rope in FDI partner. Parsvnath is already looking to sell land worth Rs 1,000 crore in south India or form joint ventures for reducing debt that stands at about Rs 1,200 crore.
In the Budget, relaxations have been made in rules of Foreign Direct Investment (FDI) in real estate and construction, which is 100 % allowed through automatic route.
Source- Financial Chronicle
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