The Hindu Business Line : Indiabulls Real Estate looking at north Chennai

Growth plans
The company is in the process of establishing a land bank in Chennai It is exploring opportunities especially in Bangalore and Hyderabad.

Chennai June 20 Indiabulls Real Estate Ltd has announced two projects in Chennai, which are likely to take shape over the next five months. The company is in the process of establishing a land bank in Chennai. It is also exploring opportunities in South India, especially Bangalore and Hyderabad.

According to information provided by the company to the stock exchange, the two projects in Chennai are to be implemented through its subsidiaries, special purpose vehicles. One is a residential project on the Old Mahabalipuram Road and another is a mixed-use project to the north of Chennai near Gummidipoondi.

According to construction industry sources, the announcement of a major project in Gummidipoondi, an industrial suburb, is a sign of things to come. It is among the areas that are set to show significant growth in the coming years. Chennai's potential has been tapped to the south and the west, and north is where companies will soon be looking.

One subsidiary, Selene Estate Pvt Ltd is acquiring over 50 acres on Old Mahabalipuram Road, at Jalladianpet, on the road connecting Sholiganallur and Medavakkam, about 25 km from Chennai. This is expected to be a residential project with nearly 800 apartments of two and three-bedrooms of sizes ranging from 1,100 to 1,600 sq ft.

While company sources declined to give an idea of the land costs, going by general estimates, real estate sources, land in the vicinity of Sholinganallur on the OMR could cost around Rs 15 crore an acre, which would peg the Indiabulls' deal at about Rs 750 crore.

At Gummidipoondi, on NH5, another subsidiary, Fama Land Development Pvt Ltd, is in the process of acquiring over 241 acres. It has acquired over 200 acres and the deal is likely to be completed soon. This would be a mixed purpose project with residential and commercial including entertainment and industrial use, officials said.

The announcement of a large residential project in Gummidipoondi, primarly known for its industries, makes Indiabulls among the earliest of the large players to venture into the neighbourhood. Sources in the know said Indiabulls is looking for the early mover advantage. It sees the North Chennai location has one of the emerging centres. With the city growing, small industries are moving further to the outskirts and Gummidipoondi is one such emerging locality.

The Gummidipoondi project, according to market sources, would involve investments of anywhere between Rs 25 lakh and Rs 35 lakh an acre depending on the location. For over 241 acres, the company would, therefore, be spending about Rs 60-80 crore on land costs.

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