Realty firm Puravankara Projects Ltd will invest about Rs 170 crore over the next two years to develop an office complex in Hyderabad.
Bangalore-based firm has entered into a joint development agreement with land owner to develop this 4-acre commercial project, that comprises 6 lakh sq ft of built-up area.
"Buoyed by the successful sale of its commercial projects in Chennai and Bangalore, Puravankara is now launching Purva Summit, its Grade A Office Space in Hi-Tech City (Kondapur), in Hyderabad," Puravankara Projects said in a statement.
In this project, Puravankara will sell as well as lease the office spaces.
Under the sale model, the company has kept the starting price at about Rs 25 lakh for a 300 sq ft office space, enabling the retail customers to participate and invest in the commercial property market. It would lease the office spaces to large corporate tenants on behalf of the retail customers.
In the first phase, Puravankara has got the Expressions of Interest (EOI) from potential buyers for double the area that it intends to sell.
"The Real Estate sector in Hyderabad seems to have stabilised and we are likely to see an upsurge in transactions as well as commercial activity going forward. The low vacancy levels in Grade A office Space makes Hyderabad an attractive destination for investments into commercial properties," company's joint MD Ashish Puravankara said.
According to sources, the total investment on construction of this project would be Rs 170 crore over the next two years and the same would be funded through internal accruals and sales realisation from this project.
The company could achieve a sales realisation of about Rs 220 crore if it decides to sell its entire economic interest in the project, they said, adding that the company would retain some portion for leasing purposes.
Puravankara Projects has presence in Bengaluru, Kochi, Chennai, Coimbatore, Hyderabad and Mysore. It has 24.87 million sq ft of projects under development and additional 81.83 million sq ft in projected development over the next few years.
