SARE Buys 100 acres in Navi Mumbai

Realty investment firm acquires land from Silver Oak, plans to develop integrated township

Real estate investment and development firm South Asian Real Estate (SARE) has closed a deal for buying a 100-acre land in Navi Mumbai from Mumbaibased developer Silver Oak. 

SARE and Silver Oak have set up a joint venture company, in which SARE will have a majority stake. The JV will develop an integrated township on the 100 acres, which will include midincome residential development, mainly low-rise. The cost of the land parcel in Panvel is between . 150 crore and Rs 200 crore, said a source close to the development, who did not wish to be named. 
"The total cost of the project will be $350 million (Rs 1,575 crore) including construction expenditure and land acquisition. It will be financed through combination of customer advances, equity and debt," said the source. SARE will infuse Rs 75 crore as equity contribution. Consulting firm Ernst & Young is running the transaction. The JV company is expected to start work on the township in three-six months and is expected to take 5-7 years to finish the project. 
Many real estate developers are showing interest in projects around Navi Mumbai in the backdrop of several infrastructure initiatives being undertaken or announced by the government, including an international airport here. 
Since 2006, SARE has raised . 2,000 crore and currently has around 40 million sq ft of property under construction through 8 projects across India. The Navi Mumbai integrated township will be the company's second largest project in the country after its 112-acre township project at Old Mahabalipuram Road in Chennai. 
The company is looking at investing in a project spread over 50-75 acres every quarter hereon, said another source. 
SARE counts global real estate investment management firm Forum Asian Realty Income II, LP, Kuwait-based Kuwait China Investment Company, and US-based GEM Realty Capital as some of its strategic shareholders.