Vijay Khetan Group Eyes Distressed Land Assets in Mumbai, Bengaluru and Hyderabad

Vijay Khetan Group is currently talking to institutional investors and sovereign funds to raise INR 1,500 crore towards forming Special Purpose Vehicles (SPVs) to acquire financially distressed real estate assets.

The group has identified at least 20 financially distressed companies in Mumbai, Bengaluru and Hyderabad, which the company intends to buy to unlock the land asset potential. The partners of the SPVs will come in as an equity player, the company said in a release.

Speaking on the occasion of the announcement, Vijay Khetan, Chairman & MD, of the group, said, "We have over three decades of experience in the construction and finance business. Our expertise is in buying distressed assets and turning them around to

profitable real estate ventures. We intend to form separate companies where the funder will come in as an equity partner."

Vijay Khetan promoted 'Vijay Khetan Group' has diversified interests in the real estate business comprising of residential, business centres, commercial, infrastructure and hospitality. The company currently has an asset bank of over INR 2,500 crore in Mumbai.

Vijay Kehtan has been a specialist in acquiring distressed land assets. The group has acquired Borosil Company in 2002, Scientific Instruments Ltd (2004), Bharat coal-tar Pvt.Ltd. (2006), Pure Drink (makers of Campa-Cola) (2007), Shakti Mills Ltd. (2007) and Calico

Mills  ( 2008).

The group's ongoing projects include construction of a one million sq.ft residential project in Andheri, Mumbai and half-a-million sq.ft ultra-luxury residential project in Worli, Mumbai. The group has also bagged a 5 million sq.ft redevelopment project in

Bandra-Kurla Complex, Mumbai. 

The group is developing a smart city project of 250 acres in Igatpuri, Nasik, which will be ready by the latter half of 2016. The group is building a 200-key luxury hotel near the international airport in Mumbai.

Anuj Khetan, Director, VKG added, "This is the right time to acquire distressed land assets. The group has a multi-million cash reserve and is not keen on leverage."