Hyderabad, July 23: In a desperate damage-control exercise following slapping of criminal cases against its promoter B Rama Raju Jr, Maytas Properties is making moves to raise Rs 100-150 cr capital and rope in strategic partners to complete the Rs 1,100-cr Maytas Hill County project. The cases against Rama Raju were filed by Hill County customers. Sources said Maytas may float a Real Estate Infrastructure Trust (REIT) comprising financial institutions, developers and private equity players who will pool in capital to ensure project execution. Currently, the company is talking to a clutch of lenders including Axis Bank, IDBI and the State Bank of India to raise Rs 80-100 crore that will be used to complete the Hill County project.
“We are talking to existing lenders to raise capital and the banks are conducting due diligence. We have necessary collateral to raise Rs 100- 120 crore capital,” Ved Jain, Director, Maytas Properties told Express. The company, which has a land bank of about 350 acres, is likely to use it as a collateral to raise capital
. “Maytas Properties has inventory and receivables far exceeding the amount required to complete the project. If Rs 100-150 crore is infused, the company will become financially healthy and the Hill County customers will also benefit,” said Sumith Reddy, Head- Residential, Maytas Properties.
The company has already acquired about Rs 600 crore from initial bookings and has unsold inventory of Rs 150 crore. “The idea is to first complete construction of property that’s been booked to restore prospective buyer confidence,” said an industry analyst.
The company is also talking to equity investors and developers to get them on board as strategic partners.
“We have initiated talks with developers to complete the Hill County project. We hope our efforts will materialise,” Reddy said.
–Agencies–