Eredene Capital to invest Rs. 1,310-mn in real estate

Mumbai: The London-based Eredene Capital, an alternative investment market (AIM)-listed real estate investment firm, will invest Rs. 131.2 crore in Matheran Realty to develop ‘affordable homes’ in the vicinity of Mumbai.

Matheran Realty plans to offer eight million sq. ft a year of 300-500 sq. ft low-cost units in the Mumbai metropolitan region.

The company has awarded a Rs 4,800-crore contract to build 200,000 such low-cost housing units to Sterling Construction System Ltd, an engineering and construction company with a proprietary ‘concrete building’ technology based on a formwork system. The formwork system ensures time and cost savings of up to 30 per cent with ‘pre-fabricated walling’.

Mr Nikhil Naik, Managing Director, Eredene Capital India, said, “In Matheran Realty, we have found the right vehicle to focus on developing low income housing projects on the outskirts of Mumbai.

“We sight a huge potential in this segment when every other developer is talking of luxury and super luxury housing and believe the market gap for such a format is now about 3 million homes.”

The first MRPL project, an integrated township of four million sq. ft, near Karjat station, is about 100 km off the city and would be priced at Rs 999 a sq. ft.

Mr T.S. Hariharan – President, Matheran Realty, said real estate in Mumbai is primarily targeted at the affluent, while there is a pressing need and a huge market for value housing for the low-income group.

“We are looking at locations from where residents can commute to the city by train in 70 minutes,” he said.