Gulf Oil to capitalise on its 1800 acres of land in India
17 Jun 2011
Gulf Oil Corp, a Hinduja Group company, is planning to unlock the value of the 1,800 acres or so that it owns across the country, the company said in Hyderabad on Thursday.
''We are working on monetising the asset. We have firmed up a plan to develop 5.05 lakh sq ft in Bangalore into an IT/ITeS special economic zone with facilities including hotels, service apartments and retail space,'' Gulf Oil managing director Subhas Pramanik said.
The development of the Bangalore property is estimated to cost about Rs1,350 crore, he said. Gulf Oil has entered into an agreement with another group company, Hinduja Estates, for developing the SEZ.
''We will invest land from our side while the entire project cost would be footed by Hinduja Estates. The land is valued at about Rs550 crore,'' Pramanik said.
Gulf Oil and Hinduja Estates will share the resulting revenue, with Gulf Oil's share at about 30 per cent. ''The development of the property would take about two years and we expect to get about Rs80 crore every year from 2013-14 towards our share in the property,'' Pramanik said.
He said the properties were acquired over a period of time by the company, and the value of the property would now be unlocked through development.