RG Group raises Rs 170 cr from PE firm for Noida realty project

NEW DELHI, JUNE 8:  

Real estate company RG group has raised Rs 170 crore from a private equity firm for its housing project in Noida and clear dues to the development authority.

The Delhi-based realty firm has developed 14 commercial projects in the national capital. It is currently building two housing projects in Noida and Greater Noida. “We have raised Rs 170 crore from a private equity firm. The fund will be utilized in our existing project at Noida,” RG Group MD Rajesh Goyal told PTI. He declined to name the private equity firm citing confidentiality agreement.

The company has constructed 1,440 apartments in Noida project ‘RG Residency’ and the same has been handed over to the customers. However, the registration of properties has not started as the company has some pending dues with the Noida development authority. Goyal said the funds will be partly used to clear dues of the Noida authority, enabling buyers to register their properties. The remaining amount will be utilized in completing some remaining work in this project, he added.

“Our focus is to deliver the projects as we have promised. Our project in Noida has already been delivered and possession has been offered. By clearing off the dues we become applicable for getting the registry process started,” Goyal said. Under the re—scheduling process initiated by the Noida authority, RG Group will clear 25 per cent of its dues and rest would be paid by regular installments until 2020—21. Apart from this project, RG group is developing another residential project ‘RG Luxury’ located in Greater Noida (West) where 2,145 flats are being constructed.

 Source- Business Line