Hinduja Realty Ventures Ltd (HRVL), the two-year-old real estate arm of the Hinduja Group, has chalked out a plan to invest around Rs 5,300 crore to develop three projects. The projects will come up on land belonging to other group companies. The company will be funding the investment through a mix of internal accruals and debt. These projects together have a built-up potential of 30 million sq ft. As of now, Hinduja Group’s land bank stands at a whopping 2,300 acres.
To start with, the company is looking at developing a 40-acre commercial project in Bangalore. The construction will start in the next 3-4 months, after the monsoons. ?We have got all the approvals from the state authorities. The land belongs to Gulf Oil Corp and will contribute to a built-up area of 8 million sqft and a saleable area of 5 million sqft. We are also planning for a business hotel, service apartments and retail in that space,? said Ravinder Babbar, COO, HRVL. The company has estimated an investment of about Rs 1,200 crore for this first project.
The next in the pipeline is an integrated township in Bangalore with a total area of 115 acre. The company has to get height clearance amongst other clearances from the concerned authorities. ?During the slowdown in the realty sector, we had kept project execution on the backburner. We utilised that time in drawing up our master plan for these projects and getting clearances,? added Babbar. HRVL has envisaged an investment of about Rs 2,300-2,500 crore for this project.
The third project which is keeping the company busy these days is an 85-acre residential project in Hyderabad. This boomerang shaped land has a disowned lake which the company has offered to maintain and will name the project as Hinduja Waterfront. HRVL,, with an investment forecast of Rs 1,800-2,000 crore, has done preliminary planning for the project which will be followed by necessary clearances from the state government.
Of all these projects that the company will be developing, it does not own any land, however, we pay the landowning entity a deposit of 10% of the agreed land value. It has entered into joint developmental agreements with the land holding entity. ?We look at ourselves as the custodians of someone else’s land. Our work is to develop and deliver the finished project to the customers,? he added.
?Based on the cost of inputs, we predefine with the landowner, a share of revenue or a portion of built-up space to be given to him,? he explained.