“We are currently evaluating the eastern side, Bhubaneswar and Kolkata to start with. Hopefully, we should close the land acquisition deals, 100 acre in each of these cities, in the next six months,” he told Business Standard.
Reddy said the company was looking at creating two integrated townships in joint development with land owners in Bhubaneswar and Kolkata, together having a built-up area of about 7 million sft.
“We will be funding these two projects through internal accruals and debt in the ratio of 50:50. We will commence work on the projects in 2012 and expect to complete them in about five years from then,” he added.
Ramky Estates, which had so far completed 3 million sft of residential and commercial ventures across Chennai, Bangalore, Hyderabad and Warangal, is executing projects spread over 4 million sft in Hyderabad, Bangalore and Chennai.
These include a 1.8-million sft Ramky Towers in Gachibowli, a 450,000-sft commercial development in the financial district and a 500,000-sft independent villa project ‘Ramky Pearl’.
“These projects, put together, involve an investment of Rs 200 crore and we have already achieved financial closure. All these projects will be completed in the 2011 calendar,” Reddy said.
The company is executing two residential projects in Bangalore – an 800,000-sft venture in Yelahanka and a 400,000-sft project in the Electronic City – with an investment of Rs 60 crore (50 per cent debt and 50 per cent equity). “We should be requiring about three years to complete these projects,” he added.
Ramky is currently doing one commercial and two residential projects in Chennai, with a total investment of Rs 60 crore, fully funded through internal accruals.
“While the Old Mahabalipuram Road commercial project ‘Centre Point’ will be completed in August 2012, the West Manikyam and Medavakkam projects will be completed in March and June 2012 respectively,” Reddy said.
Stating that the company’s integrated satellite township project, ‘Discovery City’, coming up on 374 acre on the outskirts of Hyderabad, was being developed in joint venture with the group’s publicly-listed company Ramky Infrastructure Limited, Reddy said, the company was wanting to do it with an infusion of Rs 300 crore equity and Rs 200 crore debt.
“The equity is fully funded already and we are waiting for the debt closure right now. The 24-million sqft project takes 10 years to fully go on stream, and the Phase-I of the project will be commissioned in the next 24 months,” he said.
The company recorded Rs 350 crore consolidated revenues in the last financial year and was projecting Rs 500 crore this fiscal.