Lavasa township gets fresh funding valuing it at Rs 10,000 crore

Axis Bank has picked up a 2.5% stake in Lavasa corporation, a subsidiary of Hindustan Construction Company (HCC), engaged in the development of a township in Lavasa near Pune, for Rs250 crore valuing the project at Rs10,000 crore. The township is spread over 100 square kilometers and being developed in four phases. The first phase is expected to be completed in 2009-10. The entire project is expected to be completed by 2020. HCC is already positioning Lavasa as an educational centre for hospitality, higher education and management.

Lavasa has issued convertible preference shares and convertible debentures to Axis Bank.After the conversion of the debentures at the end of 5 years, the equity shares of current promoters will go down. At present, HCC holds 29 per cent stake in the project, while 16 per cent stake is held by Avantha Group (LM Thapar Group) and Venkateshwara Hatcheries holds 13 per cent. HCC is expecting a total revenue of Rs 1,470 billion (US$37.4 billion) over the next 10-15 years from the Lavasa hill station

Amby Valley, which is a competitor town hill city, created real estate first and then focused on infrastructure later. Correcting that, Lavasa is doing just the opposite, creating footfalls first by getting the roads, hotels, education centres and then setting up the real estate. Moreover, the Lavasa homes will be more affordable, entry level condominiums will begin at Rs 27 lakh that will dot the lake. Damanhole, on the other hand, as yet some years away, will boast the more exclusive residences, all bordering the golf course, with vantage views of the lake.

The star attraction at Lavasa is the waterfront; all development springs around it. To prevent the lake from drying up prior to the monsoons, HCC has built a mini dam that has created a reservoir holding of 1.8 million cubic metres of water.

Lavasa houses an Oxford University India Business Centre that will conduct business research and impart training to new generation corporate leaders.

Earlier, Lavasa had announced the setting up of a Hospitality Learning Centre by the Ecole Hteli de Lausanne (EHL) of Switzerland. The first batch for this centre will also begin in 2009.

Promoting the health platform, Lavasa has signed Apollo Hospitals to set up an integrated healthcare and wellness destination and a 50 bed multi-speciality hospital. The healthcare and wellness centre will be spread over 200 acres with the hospital slated to be ready by 2009.

Lavasa is 200 kms from Mumbai and 75 kms from Pune. The town hill will house 3 hotels managed by Novotel, Starwood and Fortune chains. Lavasa is soliciting interest from key non-industrial businesses, like convention centres, educational institutions, spas and medical centres. An 18-hole golf course is being laid out, a club house planned and, eventually, shopping centres.

Three revenue streams for Lavasa - lease rentals, the sale of apartments and single family homes and fee.

Have attached some pictures of Lavasa. Enjoy the luxury on the hills :)