Real estate developer BPTP Group has paid Rs 1000 crore to the Noida authorities as the first instalment for its ambitious 95-acre project.

The privately held developer said that the rest of the payment, of Rs 250 crore, would be made very soon.

DNA Money had last week reported about BPTP making the payment early this week.

Asked for the funding details, Mr. Sudhanshu Tripathi, director, BPTP told DNA Money, “We have not hived off any stake in the Noida project as of now.”

According to him, BPTP has used its internal accruals and the investments received from private equity investors in the past for other projects to make the payment.

In April, Citi Property Investors had invested about $160 million (Rs 640 crore), in the group for a 40% stake in the latter’s special economic zone projects.

BPTP had outbid realty majors DLF and Omaxe to bag the Noida project in March, involving a total land acquisition cost of around Rs 5000 crore.

BPTP was dangerously close to the extended deadline of June 13 for the first instalment.

Failure to honour the deadline could have led to the deal being cancelled, officials in the Noida authority said.

BPTP sought an extension to pay the first installment after the foreign banks from which it had arranged loans didn’t honour their commitment, Credit Suisse analyst Anand Agarwal wrote in a note.

Many realtors are facing the challenge of raising funds for their projects, given the current downward spiral in the real estate market and the negative sentiment thereon.

Suman Memami, research analyst at Religare Securities, added that liquidity crunch is causing builders to postpone new launches and also private equity players are in a “wait & watch mode.”

The construction cost of the financial city planned will be around Rs 3,000 crore and the total cost of the project is expected to be around Rs 9,000 crore.

BPTP expects office rentals in Noida to be more than its rival city Gurgaon upon completion.