IndiaLand to ramp up its Asset Value to Rs. 7,000 crore within next 5 years

A Dubai based Real estate company IndiaLand, which is the local division of the Americorp Group is planning to invest Rs. 1,500 crore in the Indian real estate sector within the next three years. The chief operating officer of the group Salai Kumaran confirmed this in a media interview. Moreover, the company is planning to increase its asset value in India to Rs. 7,000 crore from Rs. 3,000 crore currently within the next five years. 

Kumaran quoted, "To do so, we are strategically expanding our office space and industrial estate portfolio across cities like Chennai, Pune and Coimbatore. We are also in the process of acquiring land in Bengaluru to develop Grade A standalone office spaces."

Lately, the company has constructed more than 6 million sq ft (msf) of office parks across the three cities besides industrial parks and mall. Within the next 3-5 years the company is planning to add 2.2 msf of grade A office space in Hinjawadi, Pune in addition to the 0.50 msf of operational office space in the city and about 0.8 msf additional space in Coimbatore.

Kumaran further added, "Currently, the majority of our portfolio is in Chennai and Coimbatore. However, with the upcoming developments we will have both Maharashtra and Tamil Nadu dominating our portfolio."
He told that in Bengaluru the company is planning to acquire lands for building standalone commercial spaces in the sorroundings of eastern IT hub of Whitefield, Electronic City in the south and close to Mysuru Road.

Kumaran said, "The central parts of the city and the busy IT corridor of Outer Ring Road are already grappling with congestion and water problems. Additionally, the rents have been skyrocketing in these prime areas, thus putting more focus on the peripheral regions for us."

Currently the company is targeting on major expansion in Pune and Chennai for its industrial space portfolio. The company informed that, they have already acquired 0.5 msf of land on lease in Pune and they will double the amount in coming five years.

The company will start work on the first phase of its industrial and Logistics Park close to Chennai on about 150 acres, out of 500 acres in total. The process to obtain all approvals is ongoing and the company plans to complete the first phase within 3-5 years. In Pune they are also planning to expand their existing 20-acre industrial and logistics park.

Additionally, the company has signed a MoU with Tamil Nadu Government regarding investment of Rs.600 crore for constructing office parks and industrial spaces. 

Kumaran observed that, there is a lack of grade A office space in Tier I and Tier II cities. few of their commercial projects are going on in Trichy and Madurai.