Bhutani Infra to invest Rs 5,000 cr on 3 projects in Noida over 4 yrs
Realty firm Bhutani Infra on Thursday said it will invest around Rs 5,000 crore over the next four years to develop three commercial real estate projects in Noida and Greater Noida to cater the rising demand of office and retail spaces.
The total area in these three projects, each around 25 acres in size, is 160 lakh sq ft, of which 20 lakh sq ft has already been constructed. The company plans to sell 75 per cent of the area and will give 25 per cent space on lease. It is also helping customers if they want to put properties on lease.
“We are developing two commercial real estate projects in Noida and one in Greater Noida. We have already invested over Rs 1,000 crore on these three projects and will invest Rs 5,000 crore more in the next four years to complete these projects,” Bhutani Infra CEO Ashish Bhutani told reporters here.
The investment will be funded through internal accruals, he said.
Out of 20 lakh sq ft area that has been completed, the company has leased around 10 lakh sq ft area and is in talks to put on rent the remaining area, he added.
Bhutani said the demand for office space in Noida and Greater Noida in Uttar Pradesh has increased because of lower rental compared to Gurugram in Haryana.
He said the rentals in Noida is around Rs 40-60 per sq ft per month, while it is Rs 120-150 per sq ft in Gurugram.
Bhutani said the rentals in Noida and Greater Noida will rise as these cities have better infrastructure than Gurugram.
To boost its sales, Bhutani said the company is offering assured return in advance on the investment made by customers.
“The COVID-19 pandemic has affected every industry including the real estate. However, there has been no impact on the Grade-A office market in Noida and Greater Noida. In fact, the demand has increased in these two cities because of cost advantage,” he said, adding that the company was well positioned to tap this demand.
Bhutani said the company is debt-free as it has adopted both a sale and lease model for better liquidity.
India’s office leasing in top seven cities stood at a record 45-50 million sq ft in 2019, but the absorption might drop 30-50 per cent this year due to the coronavirus pandemic.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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