Tall & Urban News

Mumbai Housing Complex Receives Funding

The four-tower complex received funding from a bank to develop the second phase of the luxury residential project.
The four-tower complex received funding from a bank to develop the second phase of the luxury residential project.
25 March 2019 | Mumbai, India

A joint venture between Marathon Group and Adani Realty has secured RS500 crore (US$72.5 million) funding from HDFC Bank to develop the second phase of their luxury project in south Mumbai. Both companies are projecting revenue of around RS2,500 crore ($US 36 million) from this project.

The residential project – Monte South at Byculla’s second phase – was launched by the developers in early March 2019.

The first phase of the project, spread across 12 acres (4.8 hectares) in the Khatau Mills Compound, is nearing completion and construction of the subsequent high-rise will commence in the coming months. As per the plans, there will be four high rise buildings in the compound.

The Khatau Mills land is one of the last vacant land parcels remaining in south Mumbai.

“(Khatau Mills) land is already acquired, so the fund has not been raised for this purpose. For construction-related expenses it will be borne out of internal accruals or bookings made, and for gap funding, a line is available with HDFC,” said Mayur Shah, managing director of Marathon Group.

HDFC has funded an RS500 crore (US$72.5 million) loan for the second building. That same amount was loaned to Marathon and Adnai for the construction of the first tower was approved in 2015 by HDFC.

According to the joint venture partners, the second 60-story tower will have over 150 apartments for sale upon completion.

The project launch has come at a time when the market sentiment has remained subdued for luxury housing. However, Shah is optimistic about the timing of the launch of the second phase as he believes that the real estate market sentiments are beginning to look up, especially with the recent reduction in Goods and Services Tax for under-construction homes.

All the decisions for Monte South project are being taken jointly by both the developers – Marathon Group and Adani Realty — but the former is handling construction and day-to-day affairs of the project.

For more on this story visit DNA India.