Maytas Properties projects at standstill
Development work at the project sites of Maytas Properties, the real estate development company owned by Ramalinga Raju and his family members, has come to a standstill due to market uncertainties and a liquidity problem.india Updated: Jan 15, 2009 20:08 IST
Development work at the project sites of Maytas Properties, the real estate development company owned by Ramalinga Raju and his family members, has come to a standstill due to market uncertainties and a liquidity problem.
The company’s flagship project, Maytas Hill Country, at Bachupally, 10 minutes away from the Hi-Tech city, Hyderabad appears to be the biggest casualty. Around 1,000 residential apartments scheduled for possession by December, 2008, are still awaiting finishing work.
It would take another year before buyers get possession, said real estate consultants from Hyderabad.
Interestingly, before the Satyam trouble broke out, the company had handed over possession of 300 villas at the same location.
Now construction of the residential, commercial and SEZ portion of this 390-acre patch of land has come to a complete halt. An e-mail query to the communications department of Maytas Properties seeking a comment evoked no response.
Similarly, no development is happening at two more SEZs of the company in Hyderabad. So is the case with the company’s 250-acre warehousing and logistics park.
Maytas also has 370 acres of land in Nagpur, where large-scale development was planned. The project till recently was at an excavation stage.
“There is nothing much Maytas can do. They will have to wait and watch as the current situation is very fluid. No vendors and investors are comfortable to deal with them. Soon there will be a problem in payout,” said George Johnson, City (Hyderabad) head, of real estate consulting firm, Jones Lang LaSalle Meghraj (JLLM).
Meanwhile, land prices in Hyderabad are crashing after the scam broke out. According to analysts, the market, which witnessed a drop of 20 per cent recently is also headed for a further correction of 10 to 15 per cent.
Of its 6,800-acre land bank, Maytas Properties has around 670 acres of land in Hyderabad. The value of this land has also eroded substantially. In December, Satyam valued this group company at Rs 6,500 crore.