The action in India’s booming real estate sector just doesn’t seem to slow down. Joining the bandwagon now is Chandigarh-based Alchemist Group.
MUMBAI: The action in India’s booming real estate sector just doesn’t seem to slow down with existing and new entrants making ambitious investments in varied developments every other day. Joining the bandwagon now is Chandigarh-based diversified business conglomerate, the Alchemist Group.
Having acquired a BSE-listed shell company called Pan Packaging Industries Ltd a couple of years ago for a meagre Rs 5-odd crore, the promoters undertook a re-branding exercise christening it Alchemist Realty (ARL). And since the last just over a year, the company has been busy creating land banks across the country.
DNA Money has learnt that the promoters have already created a substantial land bank across key markets in the country and the company is expected to unveil them in the coming months. “A lot of these projects have being kept under wraps owing to the regulatory disclosure procedures. However, in the coming 3-4 months quite a few of them should be made public,” said the source.
In all, the promoters are understood to have chalked out a capital expenditure of Rs 4,000 core for the group’s real estate business.
Kanwar Deep Singh, managing director, Alchemist Realty, refrained from commenting on the overall investment plans. However, he did say that considerable investments have been planned in the realty venture and will be announced in the due course.
“We have just concluded the 65,000-square yard land purchase deal at Ludhiana. This will be our first real estate project under the Alchemist Realty banner. Going forward, there will be township developments much bigger in size to be undertaken on a pan-India basis,” Singh said.
While the land at Pakhowal Road (main airport road) in Ludhiana has been acquired by Alchemist for around Rs 80-odd crore, the overall investment in this project as envisaged by the promoters is around Rs 500 crore.
The investments will be funded through a mix of internal accruals and debt fund in addition to divestment of close to 30% to funds looking at investing in this space.
To be a mix-use development, the Ludhiana project will also mark Alchemist’s foray into the burgeoning Indian hospitality sector. In addition to an ultra-modern shopping complex housing the who’s who in the luxury retailing sector, the Ludhiana project will have a five-star hotel, hi-end health spa, super luxurious club, serviced apartments and service villas amongst others. These will be developed on a covered area of 17,50,000 square feet.
The hotels, serviced apartments and serviced villas will be made part of the various realty projects on a case-to-case basis. These hospitality projects according to sources will be operated by entering into management contracts with international hotel chains including the likes of Marriott, Starwood and Hyatt amongst others. “The management is understood to have already initiated a discussion with a host of international companies for a possible tie-up,” said the source.
Amongst the over half-a-dozen odd upcoming projects by Alchemist are township developments in Himachal Pradesh and Gujarat. These projects according to industry sources will be much larger than the Ludhiana project.
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