Ruchi eyes tier-II city hotels

Over the next three years, the company planned to execute projects worth Rs 1,200 crore, which would cover hospitality segment as well, said Manish Shahra, director, Ruchi Realty Holdings Private Ltd, at a press conference in Kolkata on Tuesday, on the occasion of launch its first residential project, Active Acres, in the city.

Also, Ruchi Realty is contemplating tie-up with a hotel chain for the hospitality segment.

"We are in talks with hospitality groups like Radisson and Intercontinental Hotels for a possible tie-up," he said.

The hotels, each with 200 rooms, needed estimated investment of Rs 150 crore each, and the group was eying tier II cities like Bhubhaneshwar, Jamshedpur and Indore.

The four projects under execution by the company at present include, integrated townships spread over 100 acres each in Bhopal and Indore, a luxury residential complex spread over 17 acres costing around Rs 450 crore on E M Bypass in Kolkata, and an IT park at Bantala in Kolkata with a cost of Rs 200 crore.

The land for the residential project in Kolkata was obtained through an open tender process from the sale of Central government owned Tyre Corporation of India in 2004.

The company paid about Rs 55 crore for the 17 acre plot to the government.

The total built up area in the project will be 2 million square feet. The project comprises six towers, (ground and 19 stories), with about 796 apartments, varying between 1,504 square feet and 2,581 square feet.

The price of the apartments will be between Rs 60 lakh to Rs 1 crore. The company, which has a land bank of 500 acre, has tied-up with private equity firm, Mauritius-based Sun Apollo, which will invest about Rs 240 crore over the next five years in the residential projects by Ruchi.

"A part of the funding would be from our own equity, revenue from the sale of project, apart from funding by the PE firm," he said.