Real estate prices to stabilise by year-end: L&T Infra CEO

Bangalore, Feb 15 (PTI) Real estate prices currentlyseeing volatility are expected to settle down and stabilise bythe end of the current calendar year, an expert in theinfrastructure sector said today.

Asked by reporters if L&T Infrastructure Finance CompanyLimited would finance metro rail projects in the country, itsCEO Suneet K Maheshwari said the real estate component is highin them in terms of station development, among others.

He said the company is concerned by volatility in the realestate market now, adding, it expects these prices, as alsointerest rate scenario, to settle down and stabilise by theend of 2011.

Maheshwari said the company would then look at thepossibility of financing metro rail projects.

Company sources expressed disappointment there is noaction on deal flows in the telecom sector in the past fewmonths following scandals hitting the sector, and they arekeen to see a quick resolution to the issues.

L&T Infra, meanwhile, is undertaking a public issue of"Long Term Infrastructure Bonds 2011 A-series".

The bonds issue offers benefits under Section 80CCF ofthe Income Tax Act, 1961, with a face value of Rs 1,000 eachin the nature of secured redeemable non-convertible debenturesaggregating up to Rs 100 crore with an option to retain anoversubscription of up to Rs 300 crore for allotment ofadditional bonds.

"The Bonds issue will be open for subscription on February7, 2011, and close on March 7, 2011, or earlier, as may bedecided by the Board of the company", he said.