Paid Rs 20cr for Navi Mumbai land; to get 77% rev share: Arihant

Arihant Superstructures has launched a new project in Navi Mumbai called Arihant Clan Aalishan. Aman Verma, CFO of Arihant Superstructures said the land is jointly owned by Clan and Arihant.

Verma said the company has paid some amount for the land, which is a mix of cash and product. Arihant has paid around Rs 20 crore for the land.

He says the revenue share is 23:77, that is 77 percent will be retained by Arihant and the rest 23 percent will go to Clan.Below is the transcript of Aman Verma's interview with Mangalam Maloo and Ekta Batra on CNBC-TV18.Mangalam: As we understand, this project is a partnership between you and Clan where the land is developed by the company as well as owned by Clan. So, in that case, could you tell us what the revenue share from this project is for Arihant Superstructures in quantity and when does it reflect on your numbers?A: We are offering, it is a development agreement wherein we are offering some share of the product. And we have paid some consideration initially for the land part.Mangalam: Could you quantify that?A: It is a mix of both, cash and a share of a product.Ekta: Can you give us a breakup between how much you have paid for the land?A: We have paid Rs 20 crore.Ekta: And what is the share agreement in terms of the revenue share agreement that you have with Clan?A: It is 23-77.Mangalam: 23 percent belonging to you?A: No, Clan.Ekta: So, 77 percent is what you will retain in terms of the revenue share and 23 percent will be retained by Clan?A: That is right.Ekta: What is the potential that you see from this particular project?A: It is approximately, more than 1,000 units – 1,014 units and the project potential has around Rs 1,000 crore.Watch the video for the entire discussion...