Chennai-based, BSE-listed real estate developer, Lancor Holdings Limited, is planning to invest around Rs 300 crore in the next two years to develop around 800 residential units in Chennai.
The company, which has so far developed around 3 million sft with focus on residential space, is planning to launch five projects in and around the city to add 2.5 million sft in the near future, RV Shekhar, managing director of Lancor Holdings, told Business Standard.
“Last year, we have invested around Rs 150 crore in building up our land bank in Chennai and surrounding locations. We will be developing projects on the land bank with an investment of Rs 300 crore in the next two years,” he said.
The company currently has a land bank of 120 acre in and around Chennai. However, it currently has no plans to raise funds externally, and will mainly rely on internal accruals for investments, he added.
“We also have adequate funding arrangements with some banks. Internal accruals, along with bank finance, will be sufficient to meet the required investments,” said CA Mallika Ravi, chief executive officer of Lancor Holdings. The company is focusing on the mid-premium segment and will lay emphasis on delivering products at affordable costs.
The company will start the new launches with a 150-unit apartment project, Towns Ville, at Sriperumbudur near Chennai in June this year. The other projects are coming up in and around Chennai, in locations including Guduvanchery, Nanganallur, Valsaravakkam and Sholinganallur. It is also developing a 450-unit villa project, Town & Country, at Sriperumbudur in collaboration with land owners.
In 2011-12, the company has reported a turnover of Rs 105 crore, a drop from around Rs 200 crore registered in 2010-11. The decline in turnover was on account of the delay in receiving regulatory approvals and the increased focus on land acquisitions, Ravi said.
The project pipeline is leading towards executing projects to reach a turnover of around Rs 2,000 crore in the next four years and to develop six million sft in the next six years, Shekhar said.
