Southern comfort: Realty hots up

Chennai, Mar 30 | Updated: Mar 31 2007, 06:17am hrs

L&T UIL picks stake in Arun Excellos Rs 1,500-cr project
Larsen & Toubro Urban Infrastructure Ltd (L&T UIL) is picking up a substantial stake in each of the three special purpose vehicles (SPVs) floated in association with Arun Excello to develop the Rs 1,500-crore mega integrated township project near Chennai. Both the companies have entered into an agreement on Friday to develop Estancia, Chennais first integrated township project.

Talking to FE, P Suresh, managing director, Arun Excello, said that L&T UIL will pick up 51% stake each in IT and commercial SPVs while Arun Excello will have 67% stake in residential SPV. All the three projects to be developed in 78 acres of land near Chennai, he added.

The residential project, being set up in 37 acres of land, will have 2,000 apartments, he added. The residential SPV will have an estimated investment of Rs 700 crore. Under the IT SPV 2.7 million sq ft area will be developed in 27 acres of land with an estimated investment of Rs 600 crore and the commercial SPV will have hotels, malls, serviced apartments in an area of 1 million sq ft and will have an investment of Rs 200 crore, said Suresh. In addition to that both the companies are agreed to construct a premium school in three acres of land.

He said that the entire project will be developed over a period of four years. The company will take up the residential project initially and will be officially launched on April 14, 2007. Within months of residential project announcement, we will commence projects on IT and commercial, he said. The first phase of the residential project will get completed by March 2009 and will have 70 apartments.