Aparna Group dives into affordable housing

Hyderabad-based Aparna Constructions and Estates, which is in the process of raising 14 high rise towers through a special purpose vehicle (SPV) with Morgan Stanley, and another project with JP Morgan, is mulling over to launch affordable housing projects. Aparna Constructions, according to a senior official, is in the process of investing Rs 700 crore in a residential complex with 1,120 apartments, spread over a 17-acre site at the technology corridor near the Hitech City in Hyderabad.

DS Prasad, director, Aparna Constructions said the company is in the process of finalising plans for an affordable housing complex. It expects to take up two projects shortly aimed at addressing the needs of buyers with in the range of Rs 20-40 lakh an apartment.

The company has thus far executed two large commercial complexes and is developing 12 residential projects, Prasad said.

The upcoming Aparna Sarover project will host 14 towers of 20 floors each, by far the tallest residential towers in Hyderabad. The entire project will be completed by December 2009, according to Prasad.

When asked if the slowdown has impacted the sales for the company, Prasad said most of the apartments were sold during first half of 2008 and that too several of them on bulk bookings for IT companies. “Unlike other developers, our upfront payment is about 25 per cent of the project cost,” Prasad said.

Thus far the company has developed 2 million sq ft of office cum residential space and has about 50 lakh sq ft of development work in the pipeline.

Conducting through the towers and a model apartment, the company displayed high level of automation used in the project. Each apartment of 1,800 sq ft works out to about Rs 70 lakh.