Mumbai, Mar 21 (PTI) Realty player ATS Group today said it has made a foray into the affordable housing segment by launching a new entity ‘HomeKraft’ and is eyeing Rs 4,000-5,000 crore under this business in the next 3-5 years.

While ATS will continue to focus primarily on boutique and premium housing, HomeKraft would exclusively cater to the housing needs of affordable and mid income housing groups, the company said in a statement issued here.

“To begin with, the company is looking at developing projects in the NCR with apartments ranging between Rs 30-70 lakhs. We will then move on to the rest of the country. We are looking to clock sales of 6000-6500 units in the next 3-5 years with expected revenue in the range of Rs 4000-5000 crore,” HomeKraft chief executive officer Prasoon Chauhan said.

The company will invest close to Rs 1,500-2,000 crore for construction of these units and will fund it with a mix of internal accruals, debt and private equity funds.

“ATS is already in advance talks with a major private equity firm to raise funds for HomeKraft in the next 2-3 months,” he said, adding HomeKraft aspires to be one of top five developers of the country in the next 3-5 years.

Commenting on the development, ATS Group Chairman and Managing Director Getamber Anand said there was a persistent demand from the customers for affordable and mid-segment housing.

Currently, ATS has a portfolio of 30 million sq ft of residential space delivered and 40 million sq ft underway.

This is published unedited from the PTI feed.