The company is in the process of raising $150 million currently and is targeting the first close by December end. As much as 40 to 50 percent may get raised by the first closing, said founder and CEO Mohit Malhotra.
Real estate company NeoLiv, set up by former MD and CEO of Godrej Properties Mohit Malhotra and six equity partners, plans to develop around 10 housing projects across Delhi-NCR and Mumbai.
The company will launch five group housing projects and an equal number of plotted developments with a total development potential of 10 million square feet.
The company has identified 10 projects in Delhi-NCR and Mumbai Metropolitan Region (MMR) for development and is currently in talks with landlords to enter into Joint Development Agreements (JDAs), Malhotra told reporters.
“We have already shortlisted around 10 projects across two cities. A few of them are in the advanced stages of negotiations. These may get signed in the next two to three months. These projects are expected to have units in the price range of Rs 1 crore to Rs 3 crore. The company aims to enter into 7-8 JDAs by the end of this financial year with a total development potential of 10 million square feet. For plotted development, it might look at outright purchase of land,” he said.
“While we are largely focusing on the deployment of capital this year, we expect to launch at least two residential projects in the next financial year,” Malhotra said, adding these may include 1,000 housing units in NCR and about 800 in Mumbai with the rest being plotted developments. These projects may come up in Noida, Gurgaon in the NCR and Goregaon, Chembur, Vikhroli and Borivali, among others, in Mumbai.
“Our focus will be those customers who want to buy good quality homes in the middle-income segment. The bulk of our offerings will be in the price range of Rs 1-3 crore per apartment. Plots will be in a range of Rs 50 lakh to Rs 1 crore,” Malhotra said.
The funding
NeoLiv Capital Advisor has secured approval of Category II AIF from capital markets regulator Securities and Exchange Board of India, under which it intends to raise $150 million, including a $60 million green-shoe option.
“We are in the process of raising $150 million right now and are targeting the first close by December end. As much as 40 to 50 percent may get raised by the first closing,” he said.
“Once we raise the funds, we will come under the top 15 developers in terms of net worth. The Rs 1,200 crore worth of equity backing will give customers comfort that the project will be completed on time,” he said.
NeoLiv Real Estate will execute real estate projects under the asset-light development management model.
NeoLiv is an integrated residential platform. It has two arms — NeoLiv Capital Advisor and NeoLiv Real Estate. “We decided to do both — raise a fund that will invest in projects and also develop the projects. The idea was to have end-to-end control,” he said.
This model is unique to the residential market, said Malhotra. “While this model has been tried in the commercial and warehousing segments, it is a first in the housing space,” he added.
“While there are developers active in the high-end and affordable segments, there are few players in middle housing due to which supply in this segment is getting constrained. Our endeavour is to fill that gap and provide quality homes to the middle-income segment,” he added.
Wealth and alternatives-focused asset firm ‘360 One’ has picked up a minority stake in NeoLiv, taking the number of equity partners to eight. The company would also focus on providing services to customers after possession of their apartments, including maintenance and facility management, he added.
Source : Money Control