Anant Raj to invest Rs4,300 cr to develop properties

Anant Raj to invest Rs4,300 cr to develop properties
PTI
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First Published: Sun, Sep 07 2008. 11 54 AM IST
Updated: Sun, Sep 07 2008. 11 54 AM IST
New Delhi: Realty firm Anant Raj Industries plans to invest about Rs4,300 crore in the next three years to develop various properties across north India as it aims to earn Rs2 crore rental everyday by 2010.
“We want to build and lease. Our focus area is to develop IT park, IT Special Economic Zones and hospitality projects,” Anant Raj Industries Executive Director Amit Sar said.
Sarin said that the company has planned to develop four SEZs, two service apartments and one IT park across various locations in northern states.
The estimated cost to develop these projects is about Rs4,300 crore, he said, adding the constructions would be completed within next three years.
On the back of its soon to be completed projects, the company is expecting a rental Rs1 crore by the end of this year.
“After many of our projects get operationalised, we are hoping our daily rentals to touch Rs2 crore by mid 2010,” Sarin said.
Asked about the funding of projects, he said: “We are a zero debt company and have strong cash reserve of Rs800 crore. Mostly it will be funded through internal accruals with very little debt, besides joint ventures (JV).”
Sarin noted that company has not been affected by the current slowdown in the real estate sector as the firm is “location driven, but not destination driven”.
Giving detail about the projects, Sarin said that the company would develop three IT SEZs at Rai, Dhumaspur and Manesar in Haryana, while one would come up at Greater Noida in Uttar Pradesh.
The sizes of the proposed SEZs would vary between 25 acres and 108 acres. The four SEZs would entail an investment of Rs3,750 crore, which would be developed by 2010.
It has also planned to develop an IT park, spread over 1.6 million sq ft, at Panchkula in a joint venture with the US-based private equity fund Monsoon Capital.
“We have formed a 51:49 JV with the PE firm for the IT park, which will be developed at a cost of Rs360 crore in the next two years,” Sarin said.
Besides, the company would also develop two service apartments in the national capital comprising a total of 260 units.
“The apartments will be completed by next year and these will be developed at a total project cost of Rs170 crore,” Sarin said.
Anant Raj Industries currently has a land bank of about 982 acres, of which 120 acres are under construction.
The company had posted a consolidated income of Rs633.09 crore during last fiscal with a net profit of Rs436.80 crore.
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First Published: Sun, Sep 07 2008. 11 54 AM IST
More Topics: Anant Raj | Realty | North India | IT | Hospitality |