ATS needs `400 cr to complete Logix projects
The realtor has bagged 3 stalled housing projects with over 4,500 units in Noida
New Delhi: Realty firm ATS Group, which has decided to take up stalled projects, will require around Rs 400 crore to complete three delayed housing projects of Logix group in Noida (Uttar Pradesh), its CMD Getamber Anand said.
The company would infuse an initial amount of around Rs 50 crore to start the construction work from end of this month, he said. With the Delhi-NCR property market plagued with many stalled housing projects, ATS Group has decided to enter the project management consultancy (PMC) business and take up such stuck projects.
To begin with, the company has bagged three housing projects from Logix group and would help complete over 4,500 units in Logix Blossom Greens, Logix Blossom County and Logix Blossom Zest projects.
"We will need around Rs 400 crore to complete these three projects," Anand said. He said the company would have to initially infuse around Rs 50 crore to start the construction work in these three projects.
"There are customer receivables and unsold flats in these projects. So, once the construction work starts, the cash-flow will start," Anand said, adding that the company would also try to rope in a financial institution to fund any shortfall.
ATS group will target to start delivering apartments to buyers in a phased manner, beginning end of this year.
According to a recent report by Anarock, around 5.6 lakh housing units, worth Rs 4.5 lakh crore in seven major cities are running behind the delivery timelines, mainly due to demand slowdown and fund diversion by developers.
Delhi-NCR has 2,10,200 units worth Rs 1,31,460 crore running behind schedule.