BUSINESS

Haneda Rajathi to develop hotels

Special Correspondent

First phase will be completed by 2011

CHENNAI: Haneda Rajathi, a joint venture company promoted by the Chennai-based Rajathi Group and the Malaysia-based Haneda Trading Construction Sdn Bhd, plans to develop 15 new hotels across Tamil Nadu, with an outlay of Rs. 500 crore.

These new hotels would either come under the budget or three-star category depending on the location and requirements, according to R. S. Ashok, Chief Executive Officer, Rajathi Group of Companies.

The Rajathi group has interests in biotechnology, international trade, realty and hospitality.

Addressing a press conference here on Friday, Mr. Ashok said the project would be funded through private equity of Rs. 150 crore and the balance through debt. The first phase would be completed by 2011 and the entire project by 2015. Rajathi Group planned to tie-up with an international hospitality chain for this project, he added.

Mr. Ashok said Haneda-Rajathi joint venture was established last year with 49 per cent equity from Haneda and 51 per cent from Rajathi. This joint venture would be applicable for all the projects that would be undertaken within the country and abroad, he said.

The company has taken up projects in Sholinganallur near Chennai for a Chennai-based private real estate group. In all these projects, Haneda Rajathi would take up the build and transfer model.

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