Gera Developments invested Rs.180 crore to buy a 22-acre land parcel in Pune.

By Abhay Shah, Realty Quarter

Realty developer Gera Developments purchased from the owners of the Goel Ganga Group a 22-acre property in Pune’s Wagholi area for Rs 180 crore, two people with direct development expertise, said.

Presently, Gera Developments are in discussion with HDFC Capital Advisors, a wholly-owned subsidiary of the biggest mortgage lender HDFC in India, to invest about Rs 100 crore in this project.

“The property deal was lately completed. Negotiations between HDFC Capital and Gera Developments is created, and both companies are about to decide the investment framework and method of the investment.”

The contribution of HDFC Capital to the project is anticipated to become financial aid for the purchase of the land. While previously the promoter collected HDFC funds for constructing finance, this is HDFC Capital’s first business partnership.

CARE Ratings as AA was lately rated to Gera Developments, which has a complete area of 4 million sq ft. of residential and commercial projects in Pune, Bengaluru and Goa.

Over the next four years, the Gera Developments will create a housing project on the piece of property in Wagholi through various stages. Given the first project in Pune’s Kharadi, the firm plans to create this as its second child-centric project and has already begun the method of securing approvals and establishing alliances.

The total development potential is 1.5 million sq ft on this 22 acre of the land parcel, and it is expected that the projects will produce revenues of around Rs 1,000 crore by continuous property prices of approximately Rs 6,000-Rs 6,500 per sq ft.

The piece of property is located near to Gera Development’s Information Technology Special Economic Zone in Kharadi. This IT SEZ is being created in partnership with K Raheja Corp, a development company based in Mumbai.

Wagholi is situated on the Pune and Ahmednagar highway and has experienced a transformation since 2007 due to the saturation of the Pune central areas. The emergence of the IT-ITeS sector in eastern Pune also enabled to increase the real estate business in this area. The main drivers of development include the closeness to Kharadi IT centre, affordable projects and the connections to Pune Airport and other parts of the town.