Mumbai-based realtor Orbit Corporation is in talks with a few property firms from Singapore for partnering in its Santacruz project, sources close to the development have stated. The slum redevelopment project covers an area of 1.2 million sq. ft. in Kothewadi, Santacruz, and the company is looking to launch it in June.
One of the source said, “It is a very big project and it needs expertise in designing, which they (Orbit) are scouting for. The second reason for bringing in the partner is they will also put in money for the project level stake. The company is in the early stage of discussions with two developers for the same.”
Ram Shriya Yadav, CFO of Orbit Corp, declined to comment on the developments but added, “After the new regulations which have come, we expect at least 6-7 projects to be launched in South Mumbai by all the developers. We expect that prices will be cut by around 10 per cent which will bring the buyers back to the market.”
An analyst, who tracks Orbit Corp, said on conditions of anonymity, “The project was supposed to be launched in Diwali last year and now the talks are that they are looking to launch it by June. The company needs to scale up its launches and execution. Its debt to equity ratio is close to 1 which is a concern for us.”
Orbit Corp scrip last traded at Rs 56.35 a share on Thursday, down 2.3 per cent on the BSE in a weak Mumbai market.
Apart from bringing in a partner for this project, it is also planning to raise private equity fund for its marquee project Kilachand property and two properties on Napean Sea Road. Orbit Corp has been looking to raise more than Rs 500 crore for its projects.
Another source close to the development said, “The Kilachand property’s acquisition is moving slowly and it will take another six months before things move in that project. The negotiations are stuck on valuation issues. At present, they are eyeing private equity infusion in their Napean Sea Road projects.”