Phoenix to invest Rs 500 cr

Bangalore-based Phoenix Group Global, owner and promoter of luxury resorts, is planning to invest over Rs 500 crore in various hotel, real estate and floriculture projects in the country. The proposed investment would be funded through debt (70 per cent) and equity (30 per cent).

The company would launch hotel projects under its new brand Zuri Hotels and Resorts in Bangalore, Chennai, Ahmedabad, Kochi, Nagpur and Visakhapatnam. The company currently manages two hotels in Goa (Radisson White Sands Resort and Country Inn & Suites) and one in Kumarakom, Kerala (Radisson Plaza & Spa).

Speaking to reporters here on Thursday, Priti Chand, director (communications), Phoenix Group, said the company was planning to build two 5-star hotels in Bangalore — Whitefield and Devanahalli near the new international airport.

The company has invested Rs 200 crore in its Whitefield property, which is expected to commence operations by January 2009. For the second property, it had acquired 5.5 acres of land in Devanahalli.

In Chennai, the company is planning to promote a 5-star hotel in the IT corridor with an investment of around Rs 200 crore. It is in the final stages of acquiring land and the hotel would commence operations in 18 months after land acquisition.

Phoenix is also planning to acquire around 150 acre on the Tamil Nadu-Karanataka border for its floriculture business with an investment of around Rs 25 crore. It is planning to cultivate 60 million roses every year.

In Goa, the company’s real estate division had acquired 300 acre for building two villa projects. The proposed investment would be Rs 300 crore. This would mark the Phoenix’s entry into the real estate sector, said Chand.