HCC Real Estate Ltd (HCCREL), the real estate arm of construction major Hindustan Construction Company (HCC), is in the process of entering into large size land deals. The plots, aggregating 1,550 acres in various parts of India, will be used to develop townships.
HCCREL is planning to invest a thousand crore rupees in the initial phase of the project this financial year. Funds will be raised through HCCREL’s forthcoming IPO, Rajgopal Nogja, its president, said.
According to Nogja, “We are acquiring thousand acres of land in Nashik apart from 300 acres in Thane in Mumbai and about 250 acres in Pune. Plans are on the anvil to enter into land deals in markets such as Panvel, Kolhapur and Nagpur as well.”
Apart from this, HCC Real Estate is also planning an eighty acre slum rehabilitation scheme in Vikhroli East in Mumbai.
The company is currently engaged in constructing two million square feet IT park in Vikhroli. Nogja said, “The IT park will be a world class construction with gold rated LEED certification for green buildings. It will be ready for occupation in 2009. We hope to achieve very good valuation once the project is completed.” He informed that Future Group’s Pantaloon and Orange have already leased almost 30% of the park christened `247 Park’.
Meanwhile, Oxford University has agreed to set up executive education facilities in Lavasa, the hill station being developed by HCCREL in Lonavla, Maharashtra. In addition, Girls Day School Trust of UK and Christ College, Bangalore will also set up their campus in the hill town; MoUs have been signed to this effect. While most of the infrastructure is ready for phase I of Lavasa, the construction of villas and apartments is in full swing. HCCREL has registered pre-sales of Rs 494 crore in the 2007-’08 financial year for the Lavasa project, against a target of Rs 99 crore.
HCC Real Estate is looking at setting a second Lavasa hill station project in Gujarat, on the lines of the one at Lonavala, said Nogja.
-
PropertyWala.com
-
Latest Properties- Residential Plot / Land for sale in B T Road area, Kolkata
- 4 Bedroom Independent House for sale in Mithapur Road area, Jalandhar
- Office Space for rent in Sector 34, Chandigarh City
- 4 Bedroom Independent House for sale in Model Town , Jalandhar
- 2 Bedroom Apartment / Flat for sale in Thane East, Thane
- 2 Bedroom Independent House for rent in konanakunte, Bangalore
- 3 Bedroom Apartment / Flat for rent in Manesar, Gurgaon
- Office Space for rent in Shakesphere Sarani, Kolkata
- 3 Bedroom Apartment / Flat for rent in Sriperumbudur, Chennai
- Office Space for rent in Hiranadani Estate, Thane
3 Comments
Very informative post.. thanks
Property companies are rushing projects or cutting down on project completion time, by nearly 20 per cent in an attempt to overcome the liquidity crunch. Companies that took 3 years (36 months) on housing projects are now completing them in around 30 months by boosting efficiencies and using modern technology. One of the most significant reasons for the faster turnaround of projects is the decline in property sales by over 30 per cent in the last six months in Mumbai, national capital region (NCR) and other regions, which were the main revenue streams for developers. To add to their woes, the prices of cement, steel and labour, which account for more than half of the input costs, have risen 50 per cent over the last one year, putting pressure on developers’ margins. Construction costs, which vary from city to city, are growing 20-25 per cent every year, said industry experts.For more view-realtydigest.blogspot.com
HCC, which has been traditionally into mega power projects and tunnels, has recently started giving more thrust to its real estate, roads and infrastructure projects. Over the years, the company’s margins have been declining due to the dwindling share of power in its order book, and rising cost of raw materials. “Construction is a large volume, low margin game? says Gulabchand, whose company at present has six hydro power projects in its portfolio. Real estate, on the other hand, presents an exciting opportunity, with higher purchasing power and an economy growing at a fast pace.