City-based Binny Ltd is venturing into the real estate space and will be setting up an Integrated Township through development agency model within the Binny Mills complex in Perambur, Chennai. The 71- acre-project will entail investments to the tune of Rs. 5,000- Rs. 6,000 crore. The existing dilapidated mill building, a prominent location in many Tamil films, will have to come down, sources said.
“Yes, we are coming out with a township. It would be a mix of both residential and commercial space. Work will commence by the second half of 2015,” M. Nandagopal, executive chairman, Binny Ltd, told The Hindu . “80 per cent of the township will be residential in nature and 20 per cent commercial. There will be retail activity too. A mall, hospital, and school are also on the cards,” he added.
The board of directors of the company has approved the proposal, the company informed the Bombay Stock Exchange. It has also authorised Mr. Nandagopal and Arvind Nandagopal, managing director, to finalise and execute the Development Agency Contract.
“We are working on the funding, consultants, designers and other details. It is in the discussion stage,” Mr. Nandagopal said. Sources, who are aware of the venture, said that talks have begun with two big Indian construction firms. One of them will be shortlisted soon. Once fully operational, this would be the largest township in Chennai. Currently, the 42-acre Metrozone Township by the Ozonegroup in Anna Nagar is the largest project in the city.
Realty developers in the city say that land price here could be anywhere between Rs 6,000-Rs 7,000 per sq ft. It could even go up as the project progresses. “This is one of the prime properties in the city. By next year, prices would definitely shoot up and stand at Rs 8,500 to Rs 9,000 per sq ft,” said the head of a real estate firm.
In 2013, the company sold 14.16 acres of its land to Landmark Housing Projects for Rs. 490 crore.