Mantri Realty plans six housing projects for Rs 1500 crore

Mantri Realty will be launching six housing projects within next 3-4 months to develop around 2,300 flats across the country with an investment outlay of about Rs 1,500 crore.

The Mumbai-based real estate developer has indicated that the residential units may be priced above Rs 5 crore. These projects will be built in Mumbai, Pune, Bangalore, Gwalior and Solapur.

"The realty market has almost stabilised and buyers are coming back as they have realised that prices are unlikely to fall further. Demand is good if we offer attractive schemes," Mantri Realty Chairman Sunil Mantri told reporters.

Although there is no possibility of any price hike in immediate future, but developers are facing pressure due to 15-20 percent rise in prices of commodities like steel and cement compared to last year, he added.

Speaking on the sidelines of the Lex Witness summit in New Delhi, Mantri said,  "We are going to invest about Rs 1,500 crore over the next three years to develop around 2,300 units in six projects across Central, Western and Southern India."

The company has already acquired land required to develop these projects, which will be launched within next 3-4 months, he added.

Out of the total investment, Rs 300-500 crore will be raised as debt from banks, while the rest will come from internal accruals and customers' booking, he added.

Elaborating on the projects, Mantri said the company will construct 80 luxury apartments in Mumbai that will be offered between Rs 2 crore and Rs 5 crore.

Another high-end residential project will be constructed in Pune. The 400 apartments in the complex will be sold at Rs 1-2 crore.

Talking about the company's revenue, Mantri said it is targeting to increase it to Rs 400 crore in this fiscal from Rs 250 crore in FY13.The company currently has a land bank of over 500 acres. It also has a total debt of around Rs 100 crore.