After Four Seasons, in talks with Fairmont, Starwood for properties.
Century Group, the Bangalore-based land bank developer which has close to 2,000 acres of prime land in and around Bangalore, is set to expand its hospitality portfolio as part of its initiatives to develop 5 million square feet over the next three years.
Century Group’s land bank value is estimated to be valued at Rs 8,000 crore and the company is expected to add a further 2,000 acres of land bank going forward.
The company is understood to be in talks with global hospitality majors such as Fairmont and Starwood for setting up five star properties in
Bangalore. This move by Century comes close on the heels of its expected pact with Four Seasons, another global hospitality major for its entry into Bangalore.
The aggressive roll out by Century Group is an overall strategy of the group’s concerted effort to get into real estate development from its legacy of developing land bank.
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According to industry sources, Century is developing 3 million square feet of commercial and residential properties and addition 2 million square feet is expected to be finalised shortly.
Industry sources indicate that Fairmont and Starwood are understood to be interested in a 11-acre property owned by Century Group near the new international airport in Bangalore.
“This 11-acre property will be an integrated commercial development in addition to this hotel project,” a industry source detailed.
Century Group to develop this property and to expand its development efforts is close to raising $200 million from private equity investors.
“This sum is expected to be tied - up in three months time,” the source noted. Century Group during late last year had raised $300 million from Goldman Sachs and Fortress Group.
Ravindra Pai, Director, Century Group confirmed that there is interest from investors but no decision has been taken. If Century clinches the deal with Fairmont, it will be its second location in India after the recently announced one in Hyderabad.
Fairmont is owned by Fairmont Raffles Hotels International, a global hotel company with 90 hotels worldwide under the Raffles, Fairmont and Swissotel brands.
The company also owns Fairmont and Raffles branded residences, estates and luxury private residence club properties.
If this move by Century fructifies, it will join peers like Nitesh Group, Prestige Group, Puravankara Group, Brigade Enterprises and Sobha Developers who are actively putting up hospitality projects in Bangalore.