Kanakia Group to invest Rs 500cr in residential, hotel properties

Company currently has 13 lakh square ft of area under development in the residential space and 15 lakh square ft in the commercial segment

Diversified conglomerate Kanakia Group plans to invest more than Rs 500 crore over the next two years for developing residential and hotel properties, a top company official said.

"Our focus in the coming years will be on developing hotel and residential properties. We plan to invest more than Rs 500 crore over the next two years, which will be utilised for buying land parcel and construction," company's Chairman Rasesh Kanakia said.

With a portfolio of over 13 million sqft across categories including residential, commercial and hospitality, the company currently has 13 lakh sqft of area under development in the residential space and 15 lakh sqft in the commercial segment.

The Mumbai-based company has two hotels in its portfolio with one each in Ahmedabad (Novotel) and Mumbai (Courtyard Marriott).

"We want to become one of the leading residential projects developer. We will be focusing on developing projects in the Mumbai metropolitan region mainly because the Mumbai market is saturated," he said.

The company has land parcels in Panvel and Virar and plans to expand its presence in the regions.

"We have around 200 acres of land parcel in the region and are looking at buying another 200 acres here for expansion. In Mumbai, we are looking at redevelopment projects," he said.

In the hospitality business, the company is currently developing a 150-room hotel -- Hyatt Place -- in Goa with an investment of over Rs 150 crore.

"We also plan to develop few more hotel properties in Goa, Delhi, Mumbai and Bangalore," Kanakia said, adding, "the Goa property will be funded through debt and promoters' equity."

When asked whether the company was looking at selling its stake in the Ahmedabad hotel Novotel, he said, "We would consider exiting the project if we get the right valuation."

While private equity firm Sun Apollo owns the land, it is managed by Accor Group, the international hotel chain.