L&T Bullish on Real Estate Projects

May 30, 2007	(1 votes, average: 3 out of 5)  Loading ...
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The Mumbai based Larsen & Toubro Ltd. is planning to invest a whopping Rs 8,000 crore in Indian real estate and urban infrastructure over next three to five years. The company will make investments through its subsidiary L&T Infrastructure Development Project Ltd (L&T-IDPL).

Taking a cue from soaring demand for commercial and residential projects in India, the company expects to carve out substantial niche for itself in growing market. It envisages leveraging its strength in engineering and construction to build an excellent urban infrastructure. The main focus area will be emerging cities including Chennai, Hyderabad, Vizag, Bangalore, and Kochi.  HDFC has a 25% stake in L&T – IDPL, and would also be contributing to the investment.

L&T Ltd. has already invested Rs 700 crore in real estate and urban infrastructure projects. The management will also be investing an additional amount over Rs 500 crore in the business this year. It’s another subsidiary IDPL, L&T Urban Infrastructure, will take up the urban projects. Different real estate projects are likely to generate revenue of Rs 2,500 crore annually, as per the estimations set by L&T.

The projects will be executed in a phased manner, with each under different special purpose vehicles (SPVs). The company has planned to first make a foray into residential market of Chennai, Vishakapatnam and Colombo. It also has an integrated township in Chandigarh in its pipeline. The project will be taken in association with a local builder.

“We have already bought plot in Nagpur to build a residential project,” says YM Deosthalee, chief financial officer, L&T. The company is working with Bombay Dyeing on constructing a dilapidated building in Mumbai.

News Published Under:   Real Estate Developers |

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