Realty firm Sushma group raises Rs 100 cr from Motilal Oswal group, for development of residential project

Punjab-based realty firm Sushma group has raised Rs 100 crore from Motilal Oswal group for development of its residential project.

The loan will be utilised for the development of its ongoing housing project ‘Sushma Joynest MOH 1’ at Zirakpur, Punjab. The company is constructing over 1,050 units in this 10.75 acre project, of which the first phase has already been completed.

”We have raised Rs 100 crore from Motilal Oswal group. The fund will help in faster completion of project. Our focus has always been timely delivery,” Sushma group Executive Director Prateek Mittal said.

He said the total investment to develop this project is Rs 380 crore. Out of the total, Rs 230 crore has been spent and Rs 150 crore is pending.

”After the second wave of the pandemic, the demand for residential properties as well as rent-yielding commercial assets has risen. We have achieved our highest annual sales bookings during the 2021 calendar year,” he said.

Mittal said the the group has completed 14 projects so far, comprising 5 million square feet, while 12 projects — mostly residential — are under development in Punjab and Himachal Pradesh having 8 million square feet area.

The company is targeting to deliver 1.5-2 million square feet this year.

When asked about the market, Mittal said the residential properties are available in Rs 3,500-5,500 per square feet at Zirakapur. Prices in this region have risen in the last two years due to increase in rates of raw materials such as cement and steel.