Global financial services giant Merrill Lynch has picked up a 50 per cent stake in the Salarpuria Group’s Rs 150 crore five-star hotel project in Bangalore.
According to Mahesh Khaitan, director, Salarpuria Group: “Merrill Lynch has picked up a 50 per cent stake in the special purpose vehicle (SPV) floated to build a star hotel in Bangalore.”
The proposed hotel, which will have 250 rooms, is to come up on 300,000 sft on the Outer Ring Road (ORR) between Sarjapur and Marathalli, opposite Cisco corporate office.
In Hyderabad, the group has a star hotel project with similar investments at its tech park. The group is on the lookout for an SPV partner. It bought about 30 acres of land to build a tech park during the land auction conducted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) recently.
Talking of other investments in Bangalore, Khaitan said, “The group is planning to build two malls — 700,000 sft mall on the Old Madras Road on the TTK Prestige factory land for an investment of Rs 350 crore and the other at Yeshwanthpur Circle for an investment of Rs 250 crore on 400,000 sft.
The group, with a budget of Rs 2,500-5,000 crore has lined up 13 million sft of developments across commercial, retail and hotel sectors across six cities in India and has so far executed 8 million square feet in Bangalore alone.
“Funds for these projects are mainly generated through internal accruals and a few SPV deals to be executed over a period of time. We are in talks with a few groups,” said Khaitan.
On Wednesday, Salarpuria and its group company Sattva, launched their new residential project — Greenage — an integrated township on 21 acres (Panyan Cements factory land) on Hosur road. For the project, the group is planning to use Mivan System Formwork (a new concept in construction using aluminium) to cut down project lifestyle.
“The construction cost of the township is around Rs 1,000 crore and the sale value is around Rs 1,200 crore. The money is being raised through internal accruals and customer bookings,” he said.
Source: Business Standard