Valecha Engineering’s Foraying into Real Estate

January 18, 2007	(Be the first to rate this story!)  Loading ...
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Valecha Engineering (VEL), till now into infrastructure development, is diversifying into commercial and residential construction with an initial investment of Rs. 100 crore for its preliminary projects in Maharashtra. A financially stable company with expertise in building highways, flyovers, dams and bridges, tunnels and airport infrastructure, it has initiated moves to get into the booming real estate market.

The company will float a Special Purpose Vehicle (SPV) to manage this venture, which will cover construction of malls, other commercial complexes, and residential properties. Starting with Maharashtra, the SPV will explore opportunities in other parts of the country too.

In its search for developable land for proposed projects, VEL is exploring the possibility of making the land owner a partner in the company’s project, or go ahead with direct purchase.

Valecha is also bidding for the Bangalore Metro Rail project, and has roped in Malaysia’s Persys infrastructure development company for the same. As per the contract, VEL will lay down sub-structures while Persys will build superstructures.

The Bangalore Metro project will cover 33 kms in its 1st phase – 18.1 kms from Byappanhalli in the east to Mysore Road in the west. Running perpendicular will be a 14.9 km stretch from Yeshwantpur to RV Road. The year 2011 is the targeted completion year.

VEL also won the bid for the tunnel project in Rajasthan worth Rs. 150 crore. This 2-year project will connect Akorda Dam to Bujara village, and is part of the Dewas-II project of the state.

News Published Under:   Real Estate India, Real Estate Developers |

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