HYDERABAD: Breaking the realty jinx facing Hyderabad for over half a decade, a joint venture project approximately worth a whopping Rs 400-500 crore has made its way into the 'hi-tech' city.
Market sources say the project, touted as one of the biggest such ventures of the decade, will be executed by Canada-based real estate major Brookfield Property Group (the most profitable platform of Brookfield Assets Management Inc) in partnership with the reputable Hyderabad firm Incor. It's expected to go on the floors later this year.
Here's the fine print: The project is to be spread over a sprawling area of about 11.45 acres in a prime location - Kukatpally. The mixed use development project will comprise 2 million square feet of residential space along with 4 lakh square feet of retail area. According to market sources, the venture is aimed at attracting both investors and genuine home buyers to the city that's been reeling under a severe slowdown for many years now.
While Sandip Patnaik, managing director, Jones Lang LaSalle (JLL-Hyderabad) - the global real estate consultant firm which transacted the deal - confirmed the news, he refrained from divulging details about the project. "We are bound by a client confidentiality clause and we need to respect that," Patnaik said.
He, however, welcomed the development and insisted that it would help boost the Hyderabad realty sector. "Deals like these infuse positivity into the local realty market that has been suffering since 2008. Also, the very fact that Canada has shown faith in a local partner goes on to establish that foreign firms are once again viewing Hyderabad as a potential market for growth. That is good news," he said.
Incor, founded by P Surya Reddy and G Anand Reddy (known for their PBEL project), operates across Hyderabad, Chennai and Bangalore. Till date, it has delivered 1.5 million square feet of space and has another 2.5 million square feet under construction.
"It is indeed heartening news. Hyderabad always had the required infrastructure to support such large projects. Now, with the sentiments improving post bifurcation, these ventures are taking shape. I am confident of more such big ticket ventures pouring into the city soon," said C Sekhar Reddy, former president of Confederation of Real Estate Developers Association of India (CREDAI), while complimenting the new government of Telangana for this success.
"When basic issues such as power and water are paid attention to, the mood among people automatically starts to look up. And that's what the new regime has managed to achieve. Even industrialists who weren't very confident of the government initially have now changed their opinion. Now, everybody wants a footprint in Hyderabad's affordable market," Reddy elaborated.
Perhaps that explains why, industry sources claim, at least three multi-national companies are eyeing massive commercial spaces - upwards of one million square feet - in the city at present. "In fact, 10,000 to 50,000 square feet deals have become routine now. There are so many takers for such spaces. To add to that, if the big ones materialize, it will do Hyderabad a lot of good," said a market observer.