New Delhi-based real estate developer CHD Developers Ltd has acquired Empire Realtech Pvt. Ltd for Rs 100 crore ($18 million). CHD will convert the 12.34 acres of land it gets from the acquisition into a residential project in Gurgaon, a company statement said.
“Unlike popular perception, we have not seen any cut down in sales volume for residential properties. We at CHD believe that a mid-market residential project is where the market lies. Gurgaon is a robust market unlike other markets,” Ravi Saund, COO, CHD Developers Ltd. told VCCircle.
While the company plans to develop a residential project on the land it got from a clutch of individual land owners in Gurgaon, Saund claims that residential development is going to be the focus area of the company for next five years. The land that company acquired is in Sector 106 in Dwarka Expressway, Gurgaon has got all clearances and approvals.
The acquisition will be funded through internal accruals and fresh money from sales will take care of the Rs 200 crore ($36 million) of investments that the company will make to develop the property.
CHD Developers already has presence in Gurgaon with its project Avenue 71 on Sohna Road. The company is planning to announce a couple of new projects in Gurgaon by end of the year. “As and when Delhi market opens up, we will develop projects there,” Saund said.
Started in 1992 and taken public in 1995, CHD has projects at Karnal, Delhi NCR Vrindavan, Haridwar and Sohna Road and Gurgaon.
On Friday, the company’s shares closed marginally higher at Rs 4.84 on the Bombay Stock Exchange.
(Edited by Prem Udayabhanu)