Prestige in joint development for Pune IT park

Plans to build 800,000 sq ft on six acre Pune land owned by BU Bhandary Builders, eyes rental income of Rs 45 cr a year

Bengaluru-based property developer Prestige group is in final talks to sign a joint development with a local builder in Pune to set up an infotech park in the city.

The company plans to build 800,000 sq ft IT park on the six acre land parcel in Pune owned by BU Bhandary Builders, said sources in the know.

"The company is expecting rental income of Rs 45 crore every year from the development," said Irfan Razack, chairman and managing director of the company.

Prestige will spend Rs 240 crore for building the project, he said.

IT/ITeS contributes to 74 per cent of office demand in Pune and developers are looking to tap this demand, experts said.

 

Riding on the back of robust leasing from the IT/ITeS sector, Pune recorded the highest office absorption of 5.03 million sq ft in 2015. This is about 2.4 per cent more than 2014's number of 4.91 million sq ft, according to realty consultant Colliers International.

Contradictory to predication of 5.12 million sq ft new supply, only 3.5 million sq ft of new construction was completed in 2015. "This is because a few projects were deferred for completion in 2016. Robust absorption and less new construction has resulted in drop in vacancy levels, to about 20.5 per cent," Colliers said.