The Hindu Business Line : Simplex Infra plans realty foray with foreign investors

Banking on land
Will spend nearly 10-15 per cent of total investment in real estate
Will take up only construction projects in the overseas market for the time being

Kolkata May 26 Simplex Infrastructures, an infrastructure and engineering company, may partner with foreign investors in the real estate sector, according to Mr B.D. Mundhra, Chairman and Managing Director. The company, however, has no plans to set up a subsidiary company for its real estate foray and will opt for specific joint ventures.

"We are in the preparatory stage (for the real estate foray) and are looking at several options. We are open to the idea of partnering foreign investors on a project basis," Mr Mundhra told Business Line.

The company is currently consolidating its land bank through acquisition of land in Delhi, Bhubaneswar and Jaipur, besides West Bengal. According to Mr Mundhra, the company's first real estate project will be launched by the end of the calendar year.

Besides residential projects, Simplex Infrastructures will also develop commercial real estate projects, which include hotels, malls and office space. The company has recently bagged a Rs 106-crore project for construction and completion of a seven-star hotel, the Doha Hilton in Qatar. Mr Mundhra said, "We will spend nearly 10-15 per cent of our total investment in real estate during the current year primarily for land acquisition."

The company plans to invest Rs 5,000 crore by 2011. It will fund its investment through a combination of debt and internal accruals.

In the overseas market, the company will, for the time being, take up only construction projects and plans to enter West Asia, Central Asia and the African market.

More Stories on : Outlook | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reliance begins exploratory activities in Cauvery Basin

IFGL Refractories begins commercial production

Fortis, Trehan resolve differences, reach accord

India Infra ropes in 3 banks for raising ECB

Not such a hit, after all...

Nijhawan ties up with Thrifty for car rentals

Simplex Infra plans realty foray with foreign investors

Shantha Biotech plans export to more countries

Roca eyes domestic market for acquisitions

HPCL plans 13.5-mt crude import

Maruti re-engineers Parts Operation