Central Park plans commercial foray, to invest Rs 2,000 crore in Noida project
Realty developer Central Park is entering the commercial segment with a 40-lakh sq ft mixed-use project in Noida involving an investment of about Rs 2,000 crore.
The project will comprise about 16 lakh sq ft of office space, 16 lakh sq ft of residential development and another 8 lakh sq ft of retail space.
“We will be developing this project on a 25-acre land parcel which we own in Sector 67, Noida. We will be launching the project by 2017-end,” said Amarjit Bakshi, MD of Central Park.
The company is in talks with private equity funds for raising funds for the development, Bakshi said. “We will put in Rs 500 crore as the initial investment in the project. We are also looking at raising money from PE investors and are in talks with a few of them,” he said, adding that the company is in the final stages of appointing an international consultant for the project.
In Gurgaon, on the outskirts of Delhi, the company plans to launch a commercial project in its integrated township project, Central Park 2, and a joint venture commercial project on Golf Course Road.
Central Park expects a turnover of about Rs 3,150 crore in 2017-18, a nearly five-fold increase from the previous fiscal.
“We have around 25 lakh sq ft of project in the pipeline and we will invest around Rs 750 crore in financial year 2017-18 to complete them,” said Bakshi.
The commercial property sector is fast becoming the favoured asset class for companies and investors after the launch of real estate investment trusts (REITs) and a prolonged slowdown in the residential segment.