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Anjana Chandramouly

Wants to unlock land bank's value for benefiting shareholders

Bangalore March 22 Bangalore Infra, the real estate arm of Rajesh Exports Ltd, is looking to acquire a mid-sized construction company to handle construction and development of its projects.

"It will be a complete acquisition and talks with a construction company are in the initial stages," said Mr Rajesh Mehta, Chairman, Rajesh Exports.

The company has a land bank of about 100 acres around Bangalore and about 1.75 lakh sq ft in the city's Central Business District (CBD), collected over 15 years, he said, adding that the aim is to "unlock the value of the land bank for the benefit of our shareholders."

The non-developed value of the land bank is about Rs 400 crore, and the developed value about Rs 1,200 crore.

"To begin with, the company would develop the properties of Rajesh Exports, and then commercially exploit them. We would be announcing the first project — a residential one near Devanahalli — in the second quarter of the next financial year," he said. The company isalso planning a commercial complex in Bangalore's CBD area.

Mr Mehta said that initially Bangalore Infra would develop residential and commercial projects — including office spaces and malls. It will also look at government rehabilitation programmes — slum clearance projects and low-end and middle-end housing projects, and infrastructure projects — government contracts for roads, etc at a later stage.

Though the company's focus would be Karnataka — especially Bangalore, for now, it would look at other States thereon, he said.

More Stories on : Mergers & Acquisitions | Real Estate & Construction | Karnataka

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