Peninsula Land Ltd, the Ashok Piramal-backed real estate company, is diversifying into integrated townships and information technology parks in Pune, Nashik and Hyderabad.
Developing five projects admeasuring 21m sq ft in five years
MUMBAI: Peninsula Land Ltd, the Ashok Piramal-backed real estate company, is diversifying into integrated townships and information technology parks in Pune, Nashik and Hyderabad.
It also plans to enter Ahmedabad, Chennai, Mysore, Bangalore and Coimbatore by next year.
Peninsula is developing five projects, which includes one residential and one township project in Nashik, and integrated townships and IT Parks in Pune and Hyderabad.
The total developable area for these projects is approximately 21 million sq ft, which is expected to be operational by second quarter of 2013.
A source familiar with the development told DNA Money the Nashik project would be launched next month and Pune will follow in August, while Hyderabad will begin in the third quarter 2008.
“They are extensively planning projects in the south where the market is still buoyant,” the source said.
Piyush Suraiya, deputy general manager, Peninsula Land, said the idea is to go aggressive in western region. “So, after developing projects in Mumbai, we have Nashik, Pune and Nagpur on our radar.”
Peninsula holds 26% stake in the township project being developed in Pune, which is spread across 5 million sq ft. In Hyderabad, it has bought a 31-acre plot from Rallis India, which was acquired recently.
“The company is taking a very risky decision by putting up five huge projects during the same time, because looking at the present conditions it is unsure whether it will be able to sell the residential units. Secondly, these are IT Parks not special economic zones where IT companies would rarely tread as the tax benefit scheme will get over by March 2009 even before the project is ready,” said an analyst from a foreign brokerage, who did not wish to be named.
Peninsula plans to fund these projects by pre-selling half the area in each of these projects during the project launch stage, which will ensure cash flow for construction phase.
It has also signed a memorandum of understanding with Lehman Brothers whereby the US-based investment bank will invest $125 million in Peninsula’s projects and hold minority stake in them.
The company has earmarked approximately Rs 2,500-3000 crore for land acquisition in coming three to five years. The investment amount will come from Lehman and their domestic and offshore funds.
Peninsula recently closed its domestic fund called Indigo, which collected Rs 2,000 crore against the target amount of Rs 4,000 crore set by the company.
In Mumbai, Peninsula’s projects have received nod from the Mumbai High Court to commence its construction which was on hold for last six months.
It had received a stop-work notice from the Mumbai High Court relating to land distribution issue with Maharashtra Housing and Area Development Authority (MHADA) for low income housing project for all its mill land development projects.
Ashok Towers is slated for completion by December 2009 followed by Ashok Gardens in FY10. Peninsula Techno park and Dawn Mills projects are expected to roll out by end of 2011.
These four projects will yield a revenue of Rs 3000 crore for Peninsula.
pooja_s@dnaindia.net
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