Niranjan Hiranandani, MD of Hiranandani Constructions
MUMBAI: Mumbai-based realty developer Hiranandani Constructions has acquired a 30-acre land parcel near Sanathal junction on SG highway close to Ahmedabad and is looking to develop a mixed-use project with an investment of nearly Rs 1,000 crore.
Construction work for the project, which will include an IT park and a financial services' hub, is expected to start from March."The total investment, including around Rs 200 crore towards the cost of land, will be made over the next five +years," Niranjan Hiranandani, MD of Hiranandani Constructions, told ET.
For now, the company will finance the project through internal accruals and will look at institutional funding while commencing work. However, it will not consider the option of inducting a private equity partner in the venture, he said.
"Economic growth and emphasis on infrastructure development in Ahmedabad has been encouraging. Employment generation and rising income levels have already been acting as a catalyst for the property market here," Hiranandani said, while elaborating on the company's decision to venture into the Ahmedabad property market.
Out of the proposed total development, around 60% will be a commercial special economic zone while the remaining 40% will be for residential development. The project is expected to be developed in a phased manner with the first phase scheduled to begin by the second half of 2015 and will have a delivery target of 18 months. The entire project will be completed in two phases.
Apart from this project at Sanathal junction, the developer has also entered into an agreement with the Gujarat government where the company has been allotted a 250,000-sq ft of built-up area to build a commercial complex with an investment of Rs 125 crore.
Hiranandani Constructions is planning to set up a complex of 15 storeys in the initial phase near the Gujarat International Finance Tec-City (GIFT city) that is coming up as a Special Economic Zone (SEZ) largely devoted to finance and financial services.The Hiranandani project will begin in January next year and the first building will be ready by March 2016, he said.
The GIFT project, situated around 18 km from Ahmedabad near Gujarat's capital Gandhinagar, was conceived and conceptualised by Prime Minister Narendra Modi during his tenure as chief minister of Gujarat.
Hiranandani Constructions is also working on revamping and relaunching two townships that the developer acquired through a court auction for nearly Rs 1,000 crore earlier this year.
The Panvel project, spread over 558 acres in Navi Mumbai, will be renamed as Hiranandani Hills, while the nearly 200-acre project in Chennai will be known as Hiranandani Parks. These projects will come under the brand Hiranandani Communities.
Both the projects were stalled for over two years in the backdrop of a tussle between erstwhile owner Hirco and Hiranandani. To begin with, the developer has started construction of a 2 million sq ft SEZ in Hiranandani Hills of Panvel township.