NEW DELHI: The Aditya Birla Group has invested Rs 130 cr in a residential housing project which is being constructed by Tata Housing and Sidhartha Group on the Dwarka Expressway.

The organized deal is expected to offer an internal rate of return of 25-27 pc to the Aditya Birla Real Estate Fund in next four years.

Sidhartha Group has pledged the 49 pc share it hold in the JV with Tata Housing for the Gurgaon project to Aditya Birla Real Estate Fund. The pact is planned in a way that if Sidhartha Group is unable to provide the funds and promised returns, the group’s stake will get transferred to the fund.

Last year, Tata Housing and Sidhartha group had inked a 51:49 JV to construct a project on 20.8 acres. The location of the project is the first on Dwarka Expressway when one enters from Delhi and is very close to the international airport. The proposed land was originally owned by the Gurgaon developer.

Both the parties are hoping to earn huge revenues around Rs 1,300 cr over the project, which means Aditya Birla will get Rs 550 cr on its investment of Rs 130 cr. Tata Housing has already sold 23 pc pf the project in the first phase.

In another transaction on Dwarka Expressway, ASK Property Investment Advisors had infused around Rs 180 crore in a residential project being constructed by ATS Infrastructure.

The slowdown has been observed across most markets, with the economic slowdown and an uncertain job scene, buyers are shying away from the market.

Some correction in prices is already happening by way of freebies and promotions by developers to attract the buyers.

The secondary market, has suffered as investors who had invested in projects in Gurgaon and other parts of the country are finding it difficult to get buyers.