Ghaziabad-based builder VVIP raises Rs. 120 crore from Reliance AIF.

Ghaziabad-based builder VVIP has raised Rs 120 crore from Reliance AIF to complete the first phase of its project 'VVIP Addresses' in Ghaziabad's Raj Nagar Extension area and speed up construction in its second phase.

The project, which is one of the many affordable housing destinations in the national capital region (NCR), has 1,800 apartments, of which the builder has offered possession in 1,100.

Praveen Tyagi, chairman of VVIP Group, confirmed the structured debt transaction. 'We have raised the money to complete our construction on time so that we do not default on our commitment to home buyers. It will also help us build the second phase of the project,' he said.

An email questionnaire sent to Reliance AIF did not elicit any response.

Markets across the country have seen a slowdown in demand over the last 18-24 months because of high prices, a slowing economy and also the negativity created by several projects being massively delayed. This has resulted in builders facing a cash crunch thereby looking to raise capital.

ET