Realty firm Ashiana Housing today said it will invest about Rs 800 crore over the next seven years to develop a housing project at Bhiwadi in Rajasthan.
The company said it has acquired about 52 acre of land in Bhiwadi, Alwar where 4,000 units will be developed in phases.
Ashiana Housing, which focuses on building homes for senior citizens, had posted a net profit of Rs 33 crore over a turnover of Rs 161 crore during 2012-13 fiscal.
“We have launched our biggest project so far ‘Ashiana Town’ at Bhiwadi. We will develop 4,000 units in the 52-acre project,” Ashiana Housing Managing Director Vishal Gupta said.
This is company’s eighth project in Bhiwadi, he added.
The total development in this project would be 5 million sq ft, he said, adding that the project would be completed in the next seven years.
The company has fixed the basis selling price (BSP) at Rs 2,550 per sq ft.
Asked about sources of funding for investment, Gupta said the land has already been paid and the construction cost would be met through internal accruals and bank loans.
According to investors presentation, Ashiana Housing sold 18.65 lakh sq ft of area for Rs 503 crore in the last fiscal.
The company is targeting sales booking of 23 lakh sq ft in 2014-15.
Besides Bhiwadi, Ashiana Housing is developing projects at Lavasa township in Pune, Jaipur, Jodhpur and Jamshedpur.
The company is planning to launch projects at Halol in Gujarat and Kolkata.
Gupta said the company’s revenue and profits were weak in FY12-13 as the company has changed the accounting policy to contract completion method from percentage of completion.
Ashiana Housing share price fell by 1.26% to Rs 222.50 on BSE.
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