Hinduja Realty to develop 2,500 acres of group land
27 Apr 2012
The Hinduja Group has drawn up a plan to unlock 2,500 acres of its real estate holdings belonging to its listed as well as its privately-owned businesses through Hinduja Realty Ventures Ltd.
Four years after it ventured into the realty sector, the group run by the four Hinduja brothers is aiming to turn its realty business into a flagship revenue generator in the next five to seven years, with projects planned over nearly 300 acres across the country.
"Intermittent cycles may be there, but realty business will offer the best growth in the long term," Ashok P Hinduja, chairman of the Hinduja Group India, said in Mumbai on Thursday. "It (unlocking value) will take time. We have the capacity to hold and use this opportunity to cautiously leverage our property."
In the next five years, Hinduja Realty Ventures will develop projects over these 300 acres that are owned by group companies such as Ashok Leyland, Gulf Oil Corp, Hinduja TMT. "We hold around 2,500 acres of land parcels in India through group companies and privately. All of this will flow into realty development through Hinduja Realty Ventures in phase-wise manner," Hinduja said.
Hinduja is unfazed by the pain faced by several real estate firms. ''Real estate holds a growth pattern that no other sector can boast. The firms that are facing troubles are those that are highly leveraged," he added.
"We'll do it in a modular basis," said Hinduja and hinted that the group's realty firm will soon sign up with private equity investors on key projects.
