Shimla construction firm to foray into real estate

To cash in on the real estate boom and to meet the growing demand of houses in the hilly region, Shimla-based PK Construction Company, engaged in construction of roads, has diversified into the realty sector.

The company has floated a subsidiary called PKS Construction Company Private Ltd to undertake housing projects.

The new company would develop a housing project, spread over 8,500 square metres near Shimla with a total project cost of Rs 18 crore-Rs 20 crore and apart from the housing project it would also develop Congress Bhawan with a total project cost of Rs 2 crore.

Talking to Business Standard, Company Director Gaurav Sood said, "This would be the first planned housing project within municipality limits in Shimla. The proposed housing project would have 57 two bedroom apartments and 6 three bedroom apartments. Buyers have to shell out Rs 27 lakh for a two bedroom apartment whereas the three room site would cost around Rs 32.50 lakh."

The project is expected to be completed by December 2008. Commenting upon the cost of the apartment, which seems to be too high in the hilly area, he said, "We already have sold out 15 per cent of the total apartments, this clearly indicates the demand. Moreover, there is hardly any land within municipal limits in Shimla."

He added, "This would be the first planned housing project in Shimla and we have already sought all clearances from the concerned department, so we are expecting that the entire project would be completed by December 2008. So far the Congress Bhawan at Shimla with an estimated cost of Rs 2 crore would be completed by June."