IndiaLand Group Ambitious Vision: Doubling Asset Value to Rs 7,000 Crore in India Within Next Five Years from Current Rs 3,000 Crore
IndiaLand Group, headquartered in Dubai and a subsidiary of Americorp Group, announced plans to infuse Rs 1,500 crore into India’s real estate sector over the next three years. Salai Kumaran, the Chief Operating Officer of the group, disclosed this information to Moneycontrol.
In addition to this, the company aims to escalate its asset value in India to Rs 7,000 crore within the subsequent five years, a significant surge from its present valuation of Rs 3,000 crore.
Kumaran elucidated, “Our strategic focus involves expanding our presence in key cities such as Chennai, Pune, and Coimbatore by broadening our office and industrial estate portfolio. We are also in the process of procuring land in Bengaluru to develop standalone office spaces of the highest quality.”
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At present, IndiaLand has constructed over 6 million square feet (msf) of office parks across Chennai, Pune, and Coimbatore, alongside industrial parks and malls. Over the next 3-5 years, the company envisages adding 2.2 msf of grade A office space in Hinjawadi, Pune, augmenting the existing 0.50 msf operational office space in the city, and approximately 0.8 msf additional space in Coimbatore.
“While our current focus lies on Chennai and Coimbatore, our forthcoming expansions will establish Maharashtra and Tamil Nadu as key regions,” Kumaran remarked.
He further emphasized, “The central areas of cities and the bustling IT corridors, such as the Outer Ring Road, are grappling with issues like congestion and water scarcity. Moreover, exorbitant rents in prime zones are prompting us to explore opportunities in peripheral regions.”
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Expanding Industrial Sector
IndiaLand is eyeing significant expansions in Pune and Chennai for its industrial space portfolio. “We currently possess 0.5 msf of leased industrial space in Pune, which we aim to double over the next five years,” Kumaran affirmed.
Furthermore, the company is set to commence the first phase of its industrial and logistics park near Chennai, encompassing approximately 150 acres out of a total of 500 acres. While awaiting approvals, the first phase is scheduled for completion within 3-5 years.
In Pune, IndiaLand intends to extend its existing 20-acre industrial and logistics park.
Recently, the firm forged a memorandum of understanding with the Tamil Nadu government, committing Rs 600 crore towards the development of office parks and industrial spaces.
Tier II Cities Resurface
Kumaran highlighted a surge in demand for office spaces in Tier II cities, with Coimbatore serving as a prime example. He underscored the city’s inadequate supply of Grade A office spaces, resulting in a demand-supply gap.
“Other Tier II cities like Trichy and Madurai are also witnessing increased interest. With rents skyrocketing in Tier I cities, companies are increasingly turning towards Tier II cities to mitigate real estate costs,” he concluded.
