Vijay Khetan group to form SPV to raise INR 1,500cr

Reputed developers Vijay Khetan Group (VKG) is currently talking to institutional investors and sovereign funds to raise INR 1,500 crore towards building capacity. The company intends to form Special Purpose Vehicles (SPVs) for this, where the other partner will come in as an equity player.

The group has identified at least 20 financially distressed companies in Mumbai, Bengaluru and Hyderabad, which the company intends to buy to unlock the land asset potential.

Making the announcement recently, the CMD of the group, Vijay Khetan said, “We have over three decades of experience in the construction and finance business. Our expertise is in buying distressed assets and turning them around to profitable real estate ventures. We intend to form separate companies where the funder will come in as an equity partner."

The Vijay Khetan promoted VKG has diversified interests in the real estate business comprising of residential, business centres, commercial, infrastructure and hospitality. The company currently has an asset bank of over INR 2,500 crore in Mumbai. "This is the right time to acquire distressed land assets. The group has a multi-million cash reserve and is not keen on leverage," feels Khetan who is also known to be a specialist in acquiring distressed land assets.

The group has acquired the following distressed land assets in the past:
Borosil Company - 2002
Scientific Instruments Ltd.- 2004
Bharat Coal-Tar Pvt. Ltd.- 2006
Pure Drink (makers of Campa-Cola) - 2007
Shakti Mills Ltd.- 2007
Calico Mills - 2008.

The group's ongoing projects include construction of a one million sq.ft residential project in Andheri (Mumbai) and another half-a-million sq.ft ultra-luxury residential project in Worli, Mumbai.

The group has also bagged a 5 million sq.ft redevelopment project in the city's central business district of Bandra-Kurla Complex that is fast transforming into a residential hub for Mumbai's rich-and-famous.

The group's diversified portfolio also includes the development of a Smart City project spread across a 250 acre plot in Igatpuri, Nasik, which is expected to be ready by the second-half of the next year. Furthermore the group is also building a 200-key luxury hotel near Mumbai's international airport at Andheri.

About Vijay Khetan Group:
Founded in the year 2002 under the leadership of Vijay Khetan, VKG is among the top developers in the country today known for its quality, luxury and superior design.

The group is known for setting new standards of excellence by partnering with the best international architects and designers to provide real estate solutions that are a culmination of technological superiority and international best practices.

VKG has delivered high-end commercial, residential, industrial & SEZ and hospitality projects with superior quality, impeccable details, superior locations advantage and, creating an unequalled experience of luxury.