Building blocks

Calcutta, Nov. 29: Following in the footsteps of domestic and international majors, the Godrej group has decided to try out its luck in the real estate sector of Bengal.

To begin with, the group has decided to set up an information technology park in Sector V of Salt Lake. It is also exploring residential projects.

Godrej Properties, a wholly-owned subsidiary of Godrej Industries, looks after the real estate projects of the group.

The IT park ? to be developed in two phases ? will have a built-up space of 1.5 million square ft. The first phasewill be completed by December 2007.

?So far we have been concentrating on cities like Mumbai, Pune and Bangalore. This is our maiden venture in this part of the country. We are excited by the potential the city holds for IT commercial development,? Milind Korde, managing director and president of Godrej Properties, told The Telegraph.

The company has joined hands with Calcutta-based developer Ravinder Chamaria, promoter of Infinity IT parks, to set up the Godrej Waterside IT Park.

Godrej Properties owns 61 per cent of the venture, while Chamaria has the rest.

At Rs 1,500 per square foot, the project would entail an investment of Rs 225 crore.

There will be two towers ? a G+11 and the other G+19 ? facing the lakeside.

There will be a grand lobby and food court spread over 5,000 square metre, overlooking a landscaped pedestrian plaza.

Marketing for the project will start from early next year. The company is hoping to get a rent rate of Rs 40-45 per square and Rs 3,500 per square foot on outright sales.

?We expect a good demand from software companies that want to spread their operations geographically. There is a demand-supply mismatch here. Future scenario looks good,? he pointed out.

Godrej is also keen to foray into housing.

The company generally teams up with local partners who provide land and Godrej Properties develops the property. Next year, it hopes to launch a housing project in Calcutta and suburbs.

?We are actively scouting for land as the company plans to make a large-scale project,? he added.

It is also considering a joint venture with the state government for housing in the Rajarhat area. However, Godrej Properties is yet to strike a deal with the government for the same.

Godrej Properties generally looks for large-scale projects. Planet Godrej, located in the heart of Mumbai, has five towers and 48 storeys surrounded by rock terrains, man-made waterfalls and canopied walk ways.

Korde pointed out that residential projects would far outnumber IT commercial space because of the strong demand pull.

Godrej Properties? entry follows a number of domestic and international players. Delhi-based DLF and Unitech have started work, while international players like Keppel have set foot in the city. The Salim group of Indonesia is building a township in west Howrah.

According to an estimate, 15 lakh square ft of IT space is coming up in the city.