CarVal Investors is investing $8 million for a 49% stake in Runwal Housing & Townships, a SPV promoted by the Runwal Housing Group in Pune.

Runwal Seagull is a residential housing project of 696 flats over 11 acre at Hadapsar in Pune. CarVal is an investment arm of Cargill.US.Mujib Mundewadi, director of CarVal Investors said the company had already invested in 11 projects in India and was focussing on housing forthe middle-class.

CarValiskeen on working with fewer people but doing more with them, Mundewadi said. They would be looking at doing more projects with Runwal, he indicated. CarVal is looking at a return rate of around 20%. Apart from Runwal, CarVal is also investing in another bigger project in Pune, which would be announced later, Mundewadi said.

Sanjay Runwal, MD of Runwal Housing, which owns 51% in the SPV, said to make the flats more affordable, his company was offering a scheme to customers, under which they would not have to pay Pre EMIs to the financial institution from where the housing loan is taken till the possession of the flat.

This cost will be borne by the company and could mean a gain of Rs 3.25 lakh to Rs 5.18 lakh, Runwal said. He claimed thath is company would not sufferany loss as this was being done through financial engineering. Runwal Seagull is a Rs 400-crore project and marks the company’s progress from stand alone residential to township projects.

Runwal is also doing ground work for a special to wnship project in Pune underthe Maharashtra Government’s Special Integrated Township Policy.

Source: The Financial Express

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