ATS to in­vest ₹2,000 crore on af­ford­able homes

Hindustan Times (Chandigarh) - Estates - - HT ESTATES - Press Trust of In­dia ht­es­tates@hin­dus­tan­

Realty firm ATS’s founder Ge­tam­ber Anand on Wed­nes­day launched a new ven­ture HomeKraft to de­velop mid-in­come and af­ford­able hous­ing projects and will in­vest Rs2,000 crore over the next five years to build about 6,500 units.

Af­ford­able hous­ing, which has been ac­corded with in­fra­struc­ture sta­tus in 2017 bud­get, has gained mo­men­tum on the back of in­ter­est sub­sidy of­fered by the gov­ern­ment and lower goods and ser­vices tax (GST) rates.

HomeKraft will de­velop homes of size rang­ing from 950 sq. ft to 1,600 sq. ft and in a price range of Rs30-70 lakh, Anand told re­porters in New Delhi.

To start with, he said, the com­pany would de­velop projects in the na­tional cap­i­tal re­gion (NCR) and then across the coun­try.

“In ATS In­fra­struc­ture, we are de­vel­op­ing bou­tique hous­ing and large for­mat apart­ments of over 1,600 sq ft. So I have launched a new ven­ture HomeKraft where flats of size lower than 1,600 sq ft will be of­fered to cus­tomers,” said Anand, who is also the chair­man of re­al­tors’ body Con­fed­er­a­tion of Real Es­tate Devel­op­ers As­so­ci­a­tion of In­dia (Credai).

He said the com­pany has al­ready en­tered into joint de­vel­op­ment agreements with land own­ers for four projects cov­er­ing 10 mil­lion sq. ft of saleable area. HomeKraft’s CEO Pra­soon Chauhan said the com­pany plans to de­velop about 6,500 units over the next 3-5 years with ex­pected sales rev­enue of Rs4,000-5,000 crore.

The com­pany would in­vest about Rs2,000 crore on con­struc­tion of these units and the same would be funded through in­ter­nal ac­cru­als, debt and pri­vate eq­uity funds, he said, adding that the first project would be launched by June this year.

On share­hold­ing pat­tern of this new firm, Anand said the com­pany has been founded by him in his per­sonal ca­pac­ity and the team would also have some eq­uity.

“It will be at arm length with the ATS”. The com­pany is in talks with PE play­ers to raise funds at en­tity level, he added.

“We are build­ing on the legacy of ATS, which is syn­ony­mous with qual­ity con­struc­tion and timely de­liv­ery. More­over, in HomeKraft we are also de­sign­ing ev­ery apart­ment with max­i­mum space ef­fi­ciency and in­te­grated util­i­ties which will ful­fil the hous­ing needs of this seg­ment,” Chauhan said. ATS has de­liv­ered nearly 30 mil­lion sq. ft of res­i­den­tial space and 40 mil­lion square feet of area in un­der­con­struc­tion.


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