Real estate firm Tulip Infratech will invest Rs 5,500 crore over the next eight years to create a premium mixed-use project in Gurugram as part of its expansion plan and tap the increasing demand for luxury homes.

Tulip Infratech Chairman and Managing Director Parveen Jain told the media that the company has acquired this 19-acre stalled project, located on Gurugram's Golf Course Road from Vipul Ltd.

The firm has launched its housing project Tulip Monsella, including 1,100 flats, at Rs 20,000 per square foot. It will also construct 250 units for economically weaker sections.

Jain, who is also National Chairman of the realtors' body National Real Estate Development Council (NAREDCO), said the total developable area is 60 lakh square feet in the project, of which 6 lakh square feet is commercial space.

He told the media that the company would invest almost Rs 5,500 crore to develop the complete project. The project will be built in phases over eight years. The total sales realisation from this project is evaluated at Rs 7,000 crore.

The company has signed a joint development contract with Vipul Ltd. The beneficiary interest transfer has been sanctioned by the Town and Country Planning Department, Gurugram. The firm has taken over all the liabilities and will finish the project, he said.

Jain said the company has taken over the total debt of roughly Rs 450 crore from Vipul Ltd. PNB Housing Finance Ltd has restructured the debt.

The total interest outgo is evaluated at about Rs 40 crore yearly.

The company has already invested about Rs 250 crore so far in this project. The sales revenue from this project and other housing projects will be deployed. The firm has unsold housing inventories in other group housing projects, Jain said.

The construction work has already begun on this project. The company is utilising Mivan construction technology where the structure is 100% reinforced cement concrete, and no brickwork is used which creates the structure more sustainable and durable.

Jain said almost 350 housing units have been sold by Vipul Ltd already. Almost 50% of the commercial space has also been sold.

He said that the firm would also use the receivables from the units already sold in this project construction.

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