The Hindu Business Line : L&T-Arun Excello promoting township project near Chennai

Addressing a press conference hereon Friday, Mr S. Hariharan, General Manager (Urban Infrastructure & Utilities), Developmental Projects, L&T, said that a subsidiary L&T Urban Infrastructure Ltd and Arun Excello will set up Estancia, an integrated township, at a cost of Rs 1,500 crore, (excluding the cost of land, of about Rs 300 crore) at Maraimalai Nagar, a suburb to the south of Chennai on GST Road (NH45).

The integrated township spread over 78 acres will have residential blocks, IT park, commercial space, hotel, serviced apartments and a school. Space in the IT Park is to be leased out, he said.

The project is to be officially launched on April 14 with work on the residential blocks to start first by April end. The company will announce the pricing at the time of launch, he said.

Mr P. Suresh, Managing Director, Arun Excello Infrastructure Ltd, said that the partners have promoted three special purpose vehicles each of which would handle the development of residential, commercial and retail space.

Real estate development

Arun Excello was promoted in 1987 for undertaking turnkey construction projects. In 1997, it diversified into real estate development, commercial and residential. It has since developed over a million sq ft of built-up space. In 2005-06, the company achieved a turnover of Rs 100 crore, Mr Suresh said.

When completed in four years, Estancia will have over 2,000 apartments, spread over 37 acres and total built up space of about 3 million sq ft, IT space of 2.7 million sq ft and a million sq ft of retail space and a school set in a three-acre campus.

In the first phase the company hopes to develop over 1 million sq ft of residential space, an equal area of IT space and 1-2 lakh sq ft of retail space at a total cost of Rs 600 crore. This would be completed in two years, he said.

L&T holds a 51 per cent stake in the two of the three SPVs formed to develop the IT and commercial space, with Arun Excello holding the rest. In the SPV for residential space, Arun Excello holds a 67 per cent stake and L&T 33 per cent. The debt equity ratio would be between 2.5:1 and 3:1.

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