Embassy Group has partially acquired a stalled SEZ project in Chennai from SNP Infrastructure for an undisclosed amount, two people aware of the development said.
The 26-acre property on Thoraipakkam-Pallavaram road is close to the airport. Land on Pallavaram road costs about Rs 20 crore per acre. “The special economic zone project was shelved in 2008 by SNP due to bad market condition.It will be partial buyout and partial joint development,” the people cited earlier said.
Mike Holland, CEO of Embassy Office Parks -a joint venture between Blackstone and Embassy Group -refused to comment on the matter. “The structure is ready and Embassy will soon start construction,” said one of the persons quoted earlier.
While Embassy will build office property over 4 million sq ft, the remaining will be used for integrated development comprising residential and retail components.
In the recent past, Chennai has seen a spurt in land transactions, with a majority of investments coming in office assets. The biggest deal during this period involved Canada Pension Plan Investment Board (CPPIB) and Shapoorji Pallonji Group’s joint venture company SPREP acquiring SP Infocity IT Park in Chennai for $220 millon, or nearly Rs 1,460 crore.
In addition, Brigade Properties, a joint venture between Brigade Enterprises and GIC, Singapore, jointly acquired a 15.86-acre land parcel from Kansai Nerolac Paints in Chennai in a deal valued at Rs 550 crore, and Chennai-based real estate developer VGN raised Rs 670 crore from Piramal Capital and ECL Finance.
Embassy Group has 24 million sq ft of leased and under-construction property. Of this 12 million sq ft of office properties is under construction, with a total capital expenditure of Rs 4,500 crore. Tyson Alualu Authentic JerseyShare This