Hirco spends Rs 1,600 cr in its Chennai project

Chennai, Mar 30 | Updated: Mar 31 2007, 06:18am hrs
Hirco Plc, the UK subsidiary of the Hiranandani group, has invested over Rs 1,600 crore (125 million pound sterling) in an integrated mega township project being developed in the outskirts of Chennai. This is the first project to be developed using the proceeds of its maiden public issue which raised 382.6 million pound last year.

The company, which made an initial investment of Rs 660 crore (77.8 million pound) a few months back, has pumped in another Rs 407 crore (47.9 million pound).

When contacted a senior official of the company told FE that the company is expected to develop integrated township projects in over 600 acres of land. As part of that it has started work in 60 acres initially.

According to sources, the township development, known as Hiranandani Palace Gardens, is located south west of Chennai and will offer range of apartment sizes and styles, targeting employees of multinational companies in and around Chennai. The project will have self-sustaining community with offices, schools, healthcare facilities, shopping, recreational facilities, sources said.

While HOK Planning Group of Chicago has been entrusted with the master plan of the project, Turner Construction Company of the New York has been appointed as project manager. Construction major Larsen & Toubro is expected to develop the core infrastructure of Palace Gardens.

Hirco has decided not to rely on Special Economic Zone (SEZ) status for its additional 118 acres of land, which was acquired recently. It would rather capitalise on the great real estate demand than waiting for the Central government to come out with a concrete policy on SEZ. The company has re-examined the development as a non-SEZ township and as far as this investments are concerned, not to rely upon SEZ approval.