The Hindu Business Line : Shriram Properties proposes residential project in Coimbatore

New roadmap
The group also planned to come out with a project for the middle-income segment
It plans a shopping mall with a built up area of 4 lakh sq.ft. at an investment of about Rs 150 crore
Working on the idea of establishing an IT park in Coimbatore

Coimbatore , Sept. 5

Shriram Properties Ltd (SPL), part of the Shriram Group engaged in a range of activities including chit funds, truck financing, insurance and share broking, is coming out with a residential project in Coimbatore involving an investment of about Rs 120 crore.

The company is also on course to establish a shopping mall in the city that would involve a much higher investment and has also showcased the potential of Coimbatore as an IT destination to some of its IT clients who have responded positively to the proposal. The company has also decided to come out with a public issue shortly.

Speaking to presspersons in Coimbatore on Tuesday, Mr M. Murali, Managing Director, Shriram Properties Ltd, Bangalore, said the company's first housing project in the city named `Shriram Vijaya Hyyde Park' would come up on an 8.15-acre plot behind Bharathi Colony in Peelamedu. The project would have two and three-bedroom apartments and villas. Estimated to cost about Rs 120 crore, it would be completed by 2008.

Apart from rich specifications, the project would come with facilities like gym, swimming pool, children's play area etc. He said the housing complex would have 32 villas and 272 apartments.

Mr Shridhar G. Kulkarni, Senior General Manager, Marketing and Business Development, SPL, said the price of the two bedroom flats would start at Rs 32 lakh and the price of three bedroom flats at Rs 42 lakh. The villas with 2,750 sq ft built-up area on 6.3-cent plots would carry a price tag of Rs 85 lakh plus. Other expenses like registration, stamp duty would be extra. While the apartments are priced at Rs 2250/sq.ft, the villas are priced at Rs 3200/sq.ft. He said since a large chunk of its customers were repeat buyers, the company had already sold about 17 per cent of the Coimbatore property to its customers, nearly half of them in Bangalore, even before the formal launch of the project.

Mr Murali said SPL had so far completed construction of 40 lakh sq.ft., mainly in Bangalore, and construction of 1.4 crore sq.ft. was under various stages of implementation in Bangalore, Chennai and Hyderabad. SPL would launch its Coimbatore project on Wednesday. He felt there was good potential in the citye for quality homes and large players and SPL wanted to take the initiative.

New projects

He said apart from the high-end housing project, the group also planned to come out with a project for the middle-income segment. Besides, it is close to announcing its plans for a shopping mall in the city with a built up area of 4 lakh sq.ft. at an investment of about Rs 150 crore to start with and it would provide `international experience' to the people.

The MD said the company had also brought a few MNC information technologies companies from Bangalore to "have a feel of Coimbatore" and was confident that a few of them would "shift and set up their business in Coimbatore shortly."

IT park

Mr Murali said Coimbatore has potential for both IT and ITES sectors. SPL was working on the idea of establishing an IT park in Coimbatore but said no deal on land has been finalised yet. The company was developing about 5.5 million sq.ft. IT parks in both Bangalore and Chennai and the company was trying to bring some of its big clients to Coimbatore. These companies were receptive to the idea, he said.

On the land acquired by the company near Chennai, he said the company was establishing a 4.5-million sq. ft IT park there. Work on the Rs 2,300-crore project has begun and it would have an IT park, shopping mall, a five star hotel and service apartments. The project would be completed by early 2010.

Public issue

Asked about going public, he said the company planned to come out with a public issue to raise resources but would not comment on the size or timing of the issue since the details are still being worked out.

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