Lohia Group is planning to invest up to Rs 350 crore in developing three projects in the National Capital and Uttar Pradesh by 2011.
NEW DELHI: Amidst correction in the country's real estate scenario, diversified business house Lohia Group is planning to invest up to Rs 350 crore in developing three projects in the National Capital and Uttar Pradesh by 2011.
The group's subsidiary - Lohia Developers Pvt Ltd plans to develop two townships in Lucknow and Moradabad, and a commercial complex in Delhi.
"We have already bought a 10-acre commercial land in Delhi, which will have about 1.5 million sq ft saleable area. In developing the property, we will invest about Rs 150 crore in the next 2-3 years," Lohia Group Vice-President Ayush Lohia said.
The company is currently awaiting for various administrative clearances to start the construction, he added.
Besides, the company has also acquired 100 acres of land in Lucknow and 50 acres in Moradabad to develop two integrated townships there.
Lohia said the company would invest about Rs 150 crore in the Lucknow township, while the Moradabad project would cost about Rs 50 crore.
"We have just acquired the land in the two cities. We have not decided much about the construction as it is in the planing stage," he added.
On funding the projects, Lohia said it would be a mix of internal accruals and debt, but refused to give details.
In property market, the growth in rentals for office space has slowed down during the first quarter of the current year on account of adequate supply, leading consultant Cushman & Wakefield had said in its latest report.
The rentals, in a substantial number of micro-markets across the major cities remained stagnant during January-March quarter of this year, while in certain suburban and peripherallocations it witnessed a slight decline, the report said.
The Noida-based Rs 400 crore Lohia group is currently involved in garment and handicrafts exports, steel and brass coil business and automobile. Its real estate business contributed about Rs 40 crore to the total revenue during the last financial year.
Last week the group announced its foray into the automobile sector with a Rs 150-crore investment to launch electric two and three wheeler vehicles in the second half of this year. It has set up a subsidiary - Lohia Auto Industries - to set up a greenfield manufacturing facility at Kashipur in Uttarakhand with an installed capacity of two lakh units per annum.
The first lot of the electric two-wheelers from the Lohia stable is expected to hit the market by August this year followed by three-wheelers in November.
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