The Hindu Business Line : Bangalore Infra plans five projects using land bank

Bangalore June 12 Bangalore Infra, the real-estate arm of Rajesh Exports Ltd, plans to develop five properties in and around Bangalore from the company's existing land bank of 32 properties. "This is the first phase of development, and work will commence in about six months," said Mr Rajesh Mehta, Chairman, Rajesh Exports. The company would invest about Rs 140 crore in these projects. The company has 23 properties in and around Bangalore and the rest in Kerala, he said. The company informed the Bombay Stock Exchange on Tuesday about the board's decision to develop these properties.

According to a company release, the land area developed would be about 8.26 lakh sq ft and the total saleable developed area about 14.62 lakh sq ft. When developed, they would fetch the company an additional profit of Rs 300 crore; or additional earnings of Rs 90 per share, Mr Mehta said.

The land bank is the result of "the company's strategic investment in real estate over a period of time", which it hopes to unlock now for the benefit of shareholders, he added.

Of the five projects, two would be residential and the rest commercial.

The company will develop 10.26 lakh sq ft of residential space with about 750 units ranging from 1,000 sq ft to 2,500 sq ft and costing between Rs 18 lakh and Rs 50 lakh. It plans to develop over 3 lakh sq ft of commercial space, of which one property would be located in Chickpet in the heart of the city.

Discussion on the next phase of development would begin six months later, Mr Mehta said.

Mr Kalpesh Sagar, General Manager, Bangalore Infra, would decide on the method of development. It would either be joint development with an established developer, or through acquisition of a mid-sized construction company. Talks for the latter are already on, Mr Mehta said.

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