Empee Group, which is currently into the businesses of hospitality, liquor, sugar and power, is planning to foray into the real estate sector. The company is planning to set up two residential projects with an investment of around Rs 400 crore in Chennai, according to a top official of the company.
The company would start two projects on a land bank of around 20 acre in Kuthumbakkam, between Poonamalle and Sriperumbudur in Chennai, to offer around 1,000 apartments in the next three years.
This includes a 1.25-million project comprising around 800 house units and the other with 250,000 sft with around 200 units . The projects, targeted at the medium-segment customers, are expected to go on stream by the end of 2012.
“With the land bank we have, we thought of entering into real estate way back in 2007. However, the market was not good then and hence we had to hold back the proposal. Now, with think it is time to start our real estate operations,” said Nisha Purushothaman, vice-chairperson of the Empee Group.
The projects would be executed through the group's building construction arm, EDL Properties Private Limited. The project management team of its hospitality business, which includes the Hilton Hotel that was opened last year, would share its expertise in addressing all the issues concerned in detail.
“The location of the land bank and its access to the highway and the main road would give us an advantage in sales. Real estate is an area which we would develop our expertise into. We look at it seriously and plan to be in it in the long-term,” she added.
The company also has another 25 acre, mainly in Chennai, which would also be used for real estate development in future. Initially, the focus would be on residential projects.
The Rs 1,500-crore Empee Group has recently revealed its plans to set up a mega thermal power project of up to 1,320 Mw in Tamil Nadu with an investment of around Rs 6,500 crore. The company has also reentered the beer market.
