The Hindu Business Line : Khivraj plans high-end non-IT office space

Chennai, Aug. 10 Khivraj Tech Park, the real estate arm of Khivraj Motors, is planning an 1.80 lakh sq ft high-end, non-IT office space, according to sources in the know.

Work on the Rs 60-crore business park is to start by the year-end in Chennai, on a 60,000 sq ft property the company acquired from Malladi Drugs and Pharmaceuticals earlier this year.

This project, to be implemented by a special purpose vehicle that Khivraj will float, will be a grade-A building with modern amenities, a large floor plate of about 20,000 sq ft to cater to business houses.

According to sources in the know, there is a growing demand for such modern office space from large companies in Chennai. Companies across various sectors including automobile companies, banks and multinational players are looking for quality office space but are forced to settle for less because of the lack of availability of grade-A buildings.

Sources said that most developers are concentrating on creating modern office space for the IT sector, where there is ample availability of space. But non-IT players are hard put for quality space. Sources felt that the demand from the non-IT segment represents a healthy market and the premium from non-IT rental would justify foregoing the obvious advantages of FSI and tax benefits that an IT park offers. This would be an emerging trend among large developers who will be looking for new markets as IT space availability increases fast, sources said.

Olympia Tech Park promoted by Khivraj is one of the largest IT spaces in India with a 1.8 million sq ft of built up space. The Chennai-based company is also planning a major foray into residential space.

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