To develop residential complex in Chennai
Hospitality, retail sector foray proposed
CHENNAI: Shriram Properties, the real estate arm of the Shriram Group, will be raising another Rs. 650 crore through strategic partners for promoting projects across the country. The company had earlier raised Rs. 891 crore through various strategic investors, which were deployed in projects in Bangalore, Vizag, Kolkata and Chennai.
M. Murali, Managing Director, Shriram Properties, told The Hindu that the sum of Rs. 650 crore would be used for developing three new projects in Chennai, Bangalore and Ahmedabad. These funds would come from investors, who would also take a stake in special purpose vehicles (SPV) to be floated to implement the three projects.
Mr. Murali said for this round of fund-raising, the company was holding talks with various investors, including a German-based real estate fund Hypo Real Estate. The investors were also looking at investing into the SPVs that would be created for each project.
In Chennai, it is proposed to develop a residential complex on 125 acres of land on the GST Road. Similarly, IT and residential complexes were planned in Bangalore and Kolkata.
The 125 acres in Chennai would be divided into two projects comprising budget and premium flats. The company hoped to construct budget apartments, which would be priced half the value of premium flats, on 20 acres and the balance would be developed into premium apartments.
Mr. Murali said his company was planning to enter the hospitality and retail sectors. Shriram Properties and a U.S.-based hotel giant would set up a chain of budget hotels across the country. Similarly, it was scouting for international partners for setting up retail malls in Chennai, Vizag, Kolkata and Bangalore.
Construction of budget housing was also on the cards, he said. At present, the company had identified Chennai and Bangalore for this project with an investment of Rs. 150 crore. Each of these cities would have 1,000 units for which 70-80 acres had been identified.
About Shriram's SEZ IT Park in Chennai, he said Phase-I of 8-lakh sq. ft. had already been completed and the space was occupied by companies such as Accenture, Satyam and Take Solutions. Phase-II with 10-lakh sq. ft. would be completed by March 2009.
Work on Phase-III, consisting of 10-lakh sq. ft., would commence by January 2009. The total cost of the project was Rs. 1,200 crore. For the Chennai IT project, Shriram had equity participation by London-based Sun Apollo, a private real estate fund provider.
Happy Investing
Padmanabhan
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