Essar Groups’ realty arm on aggressive expansion drive | business | Hindustan Times
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Essar Groups’ realty arm on aggressive expansion drive

business Updated: Jan 23, 2012 22:49 IST
Sachin Dave

Problems surrounding the real estate sector are not stopping corporate realty players. After the Tatas, Mahindras, Godrej and Hinduja groups, the Essar Group, which forayed into realty in 2007 through its fully-owned arm Equinox Realty, has aggressive plans for 2012.

Equinox is looking to finalise at least three land parcel deals—in Thane, Bangalore and Pune—totalling upto 4.5 mn sq ft by the end of 2012. It is looking to partner with private equity players in these projects. Essar Group has reportedly committed Rs 4,000 crore to its realty arm.

Equinox already has presence in Thane and Bangalore, where it would be launching projects this year. "We are looking at Thane, Pune and Bangalore for new projects measuring at least 1.5 million sq ft each," Chirag Ramakrishnan, chief executive officer, Equinox told Hindustan Times. "Private Equity players have approached us and a partnership in special purpose vehicles in our new projects is on the cards."

The company would be launching an 8-lakh sq feet residential project in Thane in 2012, which industry sources estimate will yield about Rs 500 crore revenue. Equinox is also set to launch the third phase of its Bandra Kurla Complex commercial project, totalling 1 million sq ft, which generates Rs 200 per sq ft rentals as per the company.

“We are going conservatively with our expansion plans and see ourselves as one of the top 10 players as far as EBITDA is concerned within next two-three years,” said Ramakrishnan.