Modi Buildwell to set up IT park, 3-star hotel

Ahmedabad-based Himalaya Group's real estate development division Modi Buildwell Ltd is foraying into information technology parks and integrated townships.

Modi Buildwell has bought a 22-acre land for an IT park and integrated township at Koba circle near Gandhinagar.

The company has also tied up with Taj Hotels Resorts and Palaces for setting up a three-star hotel 'Ginger' at its newly-built 'Himalaya Mall' on Drive-In road in Ahmedabad.

Modi Buildwell is already in talks with companies like Saffron Fund, Milestone and Provogue for FDI partnership.

"We are in talks with these three companies for funding our Rs 800 crore-worth IT park and integrated township projects. Through Provogue, we are looking for a strategic partnership with UK-based Liberty Fund, which has a 25 per cent stake in it," said Kamlesh Modi, Director, Modi Buildwell Ltd.

According to Modi, the company will be setting up a 90-100-room three-star hotel called 'Ginger' at its newly-built 'Himalaya Mall'.

"The hotel will be built at a project cost of Rs 25 crore, of which Rs 15 crore will be invested by us and the remaining by Taj Group. The cost of the rooms will be around Rs 1,000 per room but the final pricing will be decided by Taj Group only," added Modi.

Himalaya Group, which has a turnover of Rs 100 crore, is also planning to set up at least 10 malls in Gujarat at an investment of Rs 1,500 crore. It recently signed a Rs 300 crore MoU with Gujarat for its upcoming mall in Bhavnagar. It is also coming up with 31 high-end luxurious bungalows viz. Hermitage Villa at Ambli-Bopal road.

The bungalows will be spread across a plot area of 6,000 sq.ft each and a built-up area of 5,000 sq ft.

For its Himalaya Mall, the group had hired property consultancy company, Trammell Crow Meghraj (TCM). TCM had also conducted a study of the mall culture in the state.

According to Bappaditya Basu, head-retail services, TCM, there are 36 malls coming up in Gujarat in the next two-three years.

"Our study suggests that although 36 malls are coming up in the state, only 20 per cent of them will be successful. Usually the returns on malls for a developer is only 30-35 per cent and also if the mall is not big enough, the visitors will be less. Also, developers shy away from maintaining the malls like providing free parking, big atriums, variety in brands and products, etc.," adds Basu.