The Hindu Business Line : Gujarat realtor Radhe heads South

Ahmedabad, Oct. 4 With “green shoots” becoming a byword for the ‘receding recession’, a new pattern may be emerging in the realty sector of South India — sell-out properties lock, stock and barrel, or reduce financial burden by signing up a joint venture wherever possible. This may lead to consolidation in a sector seen as rather unorganised.

The Gujarat-based realtor Radhe Developers (India) Ltd, listed on the BSE, offers one such example. It plans to invest around Rs 175 crore in Kerala and Andhra Pradesh to develop a resort and high-end residential villas, respectively. “We have identified a resort for outright purchase near Kochi and hope to clinch the deal by next month. Besides, we also plan to sign a joint venture in the next two months with the Hyderabad-based Jayadarsini Housing for their ongoing project there,” Mr Ashish Patel, Managing Director, Radhe Developers, told Business Line here.

In Kochi, the Ahmedabad-based company will invest about Rs 60 crore from its internal accruals for buying out the resort spread over five to six acres and spend another Rs 15 crore on its renovation, through a debt. The renovated resort would start in a year’s time, he said.

By entering into a 50:50 joint venture with Jayadarsini Housing Pvt Ltd of the Gorlas Group, Radhe Developers plans to invest nearly Rs 100 crore in the ongoing project of developing a 500-acre property of residential villas near Hyderabad, in the next five years.

It comprises construction of 805 independent villas, of which 398 would be developed in the first phase in 90 acres.

In Gujarat, Radhe Developers plans to take up an ambitious Rs 12,000 crore project in Vadodara district where it has identified 1,000 acres for a massive, integrated township. Altogether 33,329 residential units have been planned by the company, which has already acquired 498 acres of land, Mr Patel said, adding the company was now awaiting the State Government’s proposed announcement of township policy to start work.

In this township, 35.4 per cent area would be residential, followed by roads (21.1 per cent), corporate commercial space (15.5 per cent), recreational and open space (14.1 per cent), institutional and amenities (7.1 per cent), among others. It would have two hotels, sports complex, cineplex, schools and other amenities.

About the emerging pattern in the South, Mr Patel said although the recession now seems to be over, the property developers in the four States are looking for opportunity to unburden themselves. “After our recent media campaign, we received many proposals offering us outright sale or joint ventures. Eighty per cent of these offers are from South India alone. We are studying them,” he added.

Near Ahmedabad, Radhe Developers, engaged in real estate and construction industry since 1995, is currently developing low-cost housing project offering 6,210 apartments of 675 sq ft each, priced at less than Rs 8 lakh apiece, including registration fee.

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