Nina Varghese

The advantage that Chennai currently enjoys over Bangalore, Mumbai and Delhi is that land is cheaper.

Chennai , Jan. 7

CONSTRUCTION companies in Chennai are racing to cash in on the growth in IT and ITES industries.

Mr Rajiv Rai, Managing Director of the RRK group, a Chennai-based real estate development company, said that the prospects for the real estate industry are bullish and that it could last for another two years.

After that, cities like Pune, Visakhapatnam and Kolkata are likely to catch up.

The advantage that Chennai currently enjoys over Bangalore, Mumbai and Delhi is that land is cheaper.

This has resulted in a number of enquiries for quality real estate space.

(Incidentally the cost of land in Pune, Visakhapatnam and Kolkata is lower than in Chennai.)

Mr Rai said that most IT companies look at a whole matrix before deciding on a particular location.

These include human resources (population numbers, quality and education system), infrastructure (power, telecommunication, water, roads and airport), financial (cost of living, real estate prices) and catalysts (Government policy, support systems, social and political stability, competition and weather).

Though the Old Mahabalipuram Road (OMR) is described as the IT corridor, many builders have set up IT parks elsewhere - in residential areas and in industrial estates.

Mr Rai said that until the six-laning of the OMR is completed, the poor condition of the road would be a deterrent to IT companies.

Some of the new projects coming up this year are those by Ramaniyam Real Estates Ltd, RRK group, Ceebros Property and Arihant.

Ramaniyam Real Estates has begun work on two commercial buildings for IT and ITES companies.

Mr Suresh V. Nathan, General Manager (Marketing), said that the company has entered into joint development of a property on Taylors Road in Kilpauk, an upmarket neighbourhood.

This building will consist of a ground floor and 12 floors covering 1.35 lakh sq ft. The project cost is Rs 10 crore, excluding land cost, Mr Nathan said.

The company is developing another project at Ekkatuthangal near Guindy at a cost of Rs 25 crore.

Funding is mainly from internal accruals and from financial institutions. The building will consist of ground floor and seven floors covering 1.25 lakh sq ft. The company is also looking at developing property for the IT and ITES industries at Guindy and Thiruvanmiyur.

Mr Nathan said that Ramaniyam would follow the market practice and offer its prospective clients three options - the bare shell with lift and staircase, the warm shell with 100 per cent power backup and central air-conditioning, and the fully fitted out office with cable lines, work stations, lighting and flooring.

The RRK group is putting up a fully fitted 60,000 sq ft IT park on the OMR at a cost of Rs 20 crore. The project will be completed in December 2005.

Ceebros Property Development Pvt Ltd has completed two projects - the first, a 90,000-sq ft commercial space on Nungambakkam High Road and the second, a 50,000 sq ft property on Nelson Manickam Road.

Mr C. Subba Reddy, Managing Director, said that the company would be constructing an IT park on the OMR, about 10 km from the Tidel Park.

In the first phase, there will be three lakh sq ft and in second phase, another two lakh sq ft. Mr Kamal Lunawat, Executive Director, Arihant Foundations and Housing Ltd, said that the company is executing an IT Park project on the OMR about two km from Tidel Park.

Arihant Technopolis will cover 2.2 lakh sq ft and the project cost is about Rs 55 crore. Arihant Insight is located in the Ambattur Industrial Estate and covers three lakh sq ft at a project cost of Rs 60 crore.

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