2.38 Acre Land in Chennai may fetch upto Rs.150 Crore for IDBI Bank

Chennai is set to witness its biggest residential land deal ever. IDBI Bank has put land in Chennai's most premium location, Boat Club Road, on the block and CNBC-TV18 reports it could fetch the bank over Rs 150 crore. Chennai's property market is buzzing with news of big-ticket deals. Close on the heels of news that Chennai based HTL is looking to sell its 11 acre land in Guindy, IDBI Bank is selling its 2.38 acre plot in the city's most posh address, Boat Club Road. The land has an FSI of 1.5 and sources say, it is probably the last large chunk of available land on Boat Club Road. Sources say bidders could pay upwards of Rs 14,000 per square foot for the chunk of land that currently houses two guesthouses of the State-owned bank. Boat Club Road is the most coveted residential address in the city and consultants say, the sale will attract an overwhelming response from developers and individuals looking to build high-end luxury housing. The sale is expected to take place in February through an e-auction. IDBI Bank has appointed Jones Lang Lasalle as the consultant to the deal. Source: ChennaiTimes

Chennai Investment News Update

Sobha Developers has won a contract worth Rs 23.21 crore to build a plant near Chennai for personal computer maker Dell's Indian arm. Pantaloon Retail has announced its plans to set up its lifestyle retail store `Central' at Chennai.

Real estate boom to gain momentum in 2007

The booming real estate market will gain momentum and is likely to attract foreign investment worth Rs 8,000 crore in 2007, an Assocham study has said. "The real estate boom of 2006 is set to multiply itself in 2007 to get India a foreign capital of over Rs 8,000 crore with leading international investors establishing their presence in the rewarding real estate development," the industry body said in a statement. The sector would provide employment opportunities to over two lakh skilled and unskilled workforce, it said. The chamber attributed factors such as strong economic growth, rising income levels, growing middle class, increasing urbanisation and improving transparency for the resurgence in the real estate sector in 2006. Assocham feels the sector would continue to grow further in 2007 with easy availability of financing. It forecasts that realty sector would grow from 12 billion dollars in 2005 to 90 billion dollars by 2015. "Greater integration with the global economy and the increase of domestic as well as foreign investments are encouraging demand for real estate. Despite ill found doubts of a bubble, foreign investors are lining up," it said. In a bid to encash the booming Indian property market, global players such as Royal Indian Raj International, Blackstone, Goldman Sachs, Emmar Properties, Pegasus Realty, Citigroup Property, Lee Kim Tah Holdings, Salim group, Morgan Stanley and GE Commercial Finance are expected to bring substantial foreign capital into India. Source: Chennai Online