Realty developer Macrotech Developers has received approval for development of an integrated township spread over 1,200 acres near Navi Mumbai, showed an official document issued by the office of district collector of Thane.
The project, to be part of the developer’s over 4,500-acre Palava City–India’s first private smart city–will have a potential developable area of nearly 120 million sq ft and is estimated to generate revenue of over 1 lakh crore.
According to real estate industry experts, this will be the largest integrated township in the country to be focussed on the affordable and mid-income housing segment that is currently seeing a significant growth in demand.
ET has seen the document that was issued on Monday.
An email query to the Thane district collector office and Macrotech Developers, erstwhile Lodha Group, remained unanswered.
Around 60% of Macrotech Developers’ sales out of average Rs 8,000 crore per year is derived from affordable and mid-income housing and this new approval is expected to bolster its presence further in this segment.
At Palava City, located at the junction of Navi Mumbai, Thane and Kalyan, Macrotech is also growing its industrial parks and logistics business, through sale and joint venture on its land, leading to free cash generation of over Rs 500 crore per year from this activity.
The company has recently received approval for a new industrial park of 250 acres in Palava City near Taloja and the upcoming Navi Mumbai airport. It has also entered into a joint venture with Hongkong stock exchange listed ESR Group and Morgan Stanley Group for its industrial parks.
Currently, the company is in the process of raising a total Rs 2,500 crore through its maiden share sale issue that opened on Wednesday and will close today.
The issue was subscribed 35% at the end of the second day with total bids of 1.26 crore shares. The portion reserved for retail investors was subscribed 0.25 times. While the Qualified Institutional Buyer (QIB) category was subscribed 0.66 times, the Non-Institutional Investor segment was subscribed 0.19 times.
The IPO is a fresh issuance of equity shares of Rs 10 face value with price band fixed at Rs 483 – Rs 486 per share. The issue will close on Friday.
The developer has raised Rs 740 crore through 14 anchor investors including 12 Foreign Portfolio Investors including Capital Group, Nomura, Ivanhoe Cambridge, Wellington Asset Management, Abu Dhabi Investment Authority, Platinum Asset Management, Marshall Wace, Brookfield Asset Management, Segantii, York, Oxbow and Discovery.