Omkar Realtors today said it will invest about Rs 1,700 crore over the next five years to build a new housing project, comprising 1,200 flats, at Andheri in Mumbai.

The prices of the flats will range from Rs 87 lakh to Rs 1.6 crore, while the carpet will vary from 355 to 710 square feet.

The Mumbai based developer has started seeking expression of interest (EoI) from prospective buyers. "We are coming up with a six acre project comprising over 1,200 units. The projects will be launched soon," Omkar Realtors Senior Vice President Rahul Maroo told reporters here.

This is the first phase of the overall 65 acre slum redevelopment project, he said.

The project cost, he said, would be around Rs 1,600-1,700 crore in the first phase of development and the company expects about Rs 2,000 crore revenue from the sale of the 1,200 units. The funding will be through internal accruals and bank finances, he said, adding that the financial closure for the project has already been achieved.

The construction work will start soon and the project will be completed by 2022, he said."Under this project, we will be handing over nearly 14,000 units to slum dwellers," Maroo said.

The company has already received about 500 EoIs from customers, of which 50 are from Delhi-NCR, he said.

An investor can expect an annual 12 per cent return on investment (ROI) from this project, he added.

"The project with a fair share of inventory under sub-Rs 1 crore bracket holds strong attraction for pan-India customers and investors looking at buying in country's primary realty market," Maroo said.

"Not only does this ticket sizing compare well with Delhi and Gurugram markets, it holds attractive ROI proposition at current pricing level," he added.

Omkar Realtors has so far delivered 15 projects in Mumbai and is currently developing another six. It is targeting to complete 20 million sq ft area by 2018 in Mumbai and has additional 4 crore square area in pipeline.

The company has rehabilitated more than 60,000 slum dwellers in Mumbai under the Maharashtra government's Slum Rehabilitation Authority (SRA) housing scheme.