Financial District land sells like hot cake

The allotment of almost the entire net area of the 113-acre Financial District, Hyderabad's new landmark for the back-office operations of banking, insurance and financial institutions, has been completed.

The net area of the district is only about 65 acres and the remaining land is meant for roads and other common infrastructural facilities.

Entities like the Union Bank of Switzerland (UBS), Franklin Templeton and Ananda Spa have already started the construction work. Nagarjuna Construction Company (NCC) has been awarded the construction work of Ananda Spa facilities, which also include a 100-room hotel.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC), which sold the land to most of the private companies at Rs 80 lakh per acre, has now jacked up the price to Rs 1 crore per acre following huge demand and zooming real estate prices around Hyderabad.

The land price, which was Rs 2,000 per square metre, was enhanced to Rs 2,500 per sq metre by APIIC at the time of allotting land to ICICI. A few entities like the Insurance Regulatory and Development Authority (Irda) were, however, given land free of cost.

According to APIIC officials, the rates charged from the multinational and domestic companies were meant to cross subsidise organisations like Irda besides investment required for infrastructure.

In fact, if the common area and infrastructure being provided are taken into consideration, the actual value of the land allotted to these companies would be anywhere between Rs 3 crore and Rs 4 crore per acre, say the real estate players.

Besides, APIIC has sought 15 acres more adjacent to the Financial District to accommodate some more reputed companies and banking institutions that approached for land, according to officials. A request in this regard is now pending with the Ranga Reddy district collector.

"Several people have approached APIIC for allotment of land in the Financial District. Applications for land allotment from companies like Sriram Insurance are still pending. Keeping in view the demand, we have sought 15 acres more to be alienated to APIIC for allotment," a senior official told Business Standard.

Simultaneously, APIIC has taken up the construction of sewerage and water supply systems apart from roads in the area at a total cost of Rs 40 crore. These are said to be on par with the infrastructure provided at the Hitec City. Though the roads have almost been laid, other infrastructure facilities are expected to be ready in a year's time.

While Ananda Spa and Franklin Templeton acquired 15 acres of land each here, UBS bought 11 acres while 7 acres of land was given to the ICICI group.

The other important allottees of land in the district include the Institute of Chartered Accountants (2.5 acres), Andhra Bank (5 acres), Irda (5 acres), Andhra Pradesh State Financial Corporation (1 acre), APIDC Venture Capital (5 acres), Basix (5 acres) and Westend (1 acre).