Mirzas to tap property development

The plan is to build 90-100 high-end apartments

Kanpur-based Mirza family, promoters of Mirza International, has decided to venture into property development through a company called Emgee Projects Pvt Ltd.

By doing so, it is following into the footsteps of pan masala makers, leather exporters and an assortment of city businessmen who feel realty has just begun in India and this will go for a long time

Mirza International Managing Director Rashid Mirza told Business Standard realty provided a very big opportunity and far higher profits than any other industry.

On specialisation, Mirza said: "We have acquired a piece of property in Kanpur and once we have gained experience, we will see what other opportunities are there to be exploited."

The property is Sutherland House, a well-known landmark in the city and the headquarters of British Indian Corporation for 70-80 years. BIC once owned 26 sugar mills in UP and Bihar, three textile mills and famous leather factory, Cooper Allen.

The area is 9,005 square metres, which the Mirzas acquired for Rs 12.50 crore. The plan is to build 90-100 hi-end apartments.

The project cost is Rs 30-35 crore and will be financed through equity and loans.Once construction starts, the money for booking will be available for investment. All means of financing have been tied up. The paid-up equity is estimated to be about Rs 11 crore.

Each apartment is likely to cost about Rs 1 crore. However, the apartments will not be sold to speculators. CP Kukreja & Associates has been hired for designing and a construction firm is being located to execute the project.