Finding it too hot to resist, infrastructure development behemoth, Larsen & Toubro is venturing into its first commercial project in the country in Chandigarh.
In a city where commercial space comes at a premium, L&T has proposed to set up a five star hotel, malls and business towers on 20 acres on banks of NH-21 near the upcoming international airport in Chandigarh.
Even though L&T has undertaken a few townships and IT park project in the past the upcoming project is an effort to venture in the commercial development space. The Chandigarh project, being undertaken by one of the subsidiary of L & T, is expected to entail an investment of over Rs 300 crore.
L &T that has made most out of the conversion policy floated by UT Administration now has one of the largest chunk of land to be developed as commercial space in Chandigarh. Property experts feel that the company has paid a handsome price for the land stretch that is strategically located in the city coming up as service sector hub. ?The conversion charges alone has incurred a cost of over Rs 180 crore,? an L &T executive said.
The price of commercial properties has risen by 50% in the last one year as more and more brands and retail chains are seeking space in the city. Of the 26 proposals for conversion with UT administration, L& T will develop half of the total 40 acres of the proposed developmental work, sources in the administration told FE. Other proposals involve less than an acre which are allowed to convert into restaurants, banks, offices, hospitals and training institutes, sources said.
Chandigarh administration has initiated the widening and strengthening of roads in Phase I and Phase II to lead the implementation of conversion policy.
