Gaurs Group, a realty developer, will make an investment of Rs 2,124 crore in three stuck Amrapali projects it had taken over from the state-run NBCC.
The Group has been awarded contracts for Amrapali Centurian Park, Verona Heights and Heartbeat City with the total inventory of 10,964 flats. The company is meeting the construction cost through internal accruals and bank guarantees.
The company is looking to increase the construction portfolio to Rs 7,000 crore in five years.
Gaurs Group has delivered over 50 commercial and residential projects spreading over 55 million sq ft and is currently not executing any large-scale project. The Group has also decided to diversify towards infrastructure.
The company has no large-scale real estate projects as of now and it has sold the majority of its under-construction inventory. In the Amrapali projects, the company is only executing it and responsibility of sales lies with NBCC.
The Group’s wholly-owned subsidiary, Gaursons Hitech Infrastructure, is executing these projects.
NBCC is involved in the completion of 23 housing projects of Amrapali. The estimated cost of completing these projects is around Rs 8,500 crore. The projects will be completed within 36 months of the allotment of the tender.