The Bengaluru-based Embassy Group’s office space and logistics and industrial warehousing projects will be launched in the current year in Chennai.
The projects in the commercial segments are timed to exploit the upswing in the demand for quality space in these segments, according to Michael Holland, CEO-Commercial Real Estate, Embassy Office Parks.
Over the next five years, the developer will be offering over 20 million sq ft of fully-managed industrial parks in India.
In addition, it will kick off the second phase of its residential project Embassy Residency.
The developer will launch about 1,000 apartments shortly at Sholinganallur to the south of Chennai.
Holland said the first parcel of one million sq ft at Embassy Splendid Tech Zone SEZ is due for completion before the year-end.
There is a total of 4.5 million sq ft planned on 30 acres at the Thoraipakkam-Pallavaram Radial Road.
There is keen interest among occupiers for space in integrated, modern office space.
Last year alone in Chennai over 3.5 million sq ft of office space was leased. Demand is far outstripping supply, he said. Lease rates of such quality space in the area are around ₹75 a sq ft compared with ₹50 a couple of years back.
The rentals are bound to hold as over the next two years there is “little new office space” coming in the city, he said.
On industrial and warehousing space the company has three projects in Gurgaon, Delhi; Chakan, Pune; and in Sriperumbudur, near Chennai as of now.
Reeza Sebastian, Senior Vice President – Residential Business, Embassy, said in the second phase of the Embassy Residency, apartments of 900-1600 sq ft with 2- and 3-BHK will be available in the price range of ₹45 lakh to ₹85 lakh.