Radiance Realty, a Chennai-based premium residential projects developer, is scaling up operations and its promoters are considering diversifying into utility scale renewable energy projects.

The developer, backed by a war chest swollen by the promoters selling off their road and infrastructure construction business, NAPC, to the multinational Vinci Group in January 2012, has multiplied its project pipeline several fold. NAPC’s revenue at that time was about Rs 600 crore, having been in the business for over six decades.

Varun Manian, Managing Director, Radiance Realty, said as of last year the real estate development business had delivered over 3.82 lakh square feet of built up space. It now has over 27.80 lakh square feet under construction in Chennai on the IT corridor, South Chennai’s fast-growing commercial and residential area. Radiance has finalised deals totalling over 40.03 lakh square feet of projects for completion over the next four-five years. More than 60 per cent of the projects are fully owned by Radiance and about 40 per cent are joint developments.

Manian said over Rs 650 crore equity has been brought into the projects in the past year and there are plans for more before Radiance looks at alternative sources of funds.

Radiance’s projects, mostly in the suburbs of Chennai, are estimated to bring in over Rs 7,000 a square feet as they are mostly premium developments, an indication of the revenue potential, he said. It is also planning a 70-acre villa project in Coonoor, a hill station in the Nilgiris.

Renewable energy will be another major area of development, he said. It will be a separate business which will look at the MoU route with State Governments for utility scale projects.

Wind and solar projects are under consideration, he said.

> balaji.ar@thehindu.co.in

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