As a part of its strategy to unlock the value of its 1,100 acre huge land-bank, Patel Engineering plans to foray into the realty business and build commercial and residential property, IT parks and SEZs over the next three-years, a top company official said.
“The idea is to unlock the value of our huge land-bank which has been lying with us for nearly 30 years,” Patel Engineering’s Managing Director, Rupen Patel, told PTI.
Patel Engineering’s present core operations are in the areas of building hydro-power plants, irrigation dams, urban infrastructure and transportation.
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Patel Engineering’s wholly-owned subsidiary, Patel Realty, will run the real estate business, he said.
The first project would be an 80,000 sq ft commercial property in Mumbai’s Jogeshwari area which would be leased out. “This should add Rs 10-crore to our bottomline,” Mr. Patel said.
The company also plans a one million sq. ft. commercial development in Jogeshwari.
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“On completion, this should fetch us Rs. 100 crore in rentals,” he said.
The big jump for the company will be its one crore sq. ft. residential and commercial development it is planning in Bangalore where it proposes to set up two Special Economic Zones (SEZs) for IT and ITES companies.