Work on Hyderabad’s newest skyscraper has begun. The tallest building in the country, about 8 km from the new Shamshabad airport and 6 km from Hi-Tech city, will have 100 floors and be ready in four years.
A Reliance Infrastructure led consortium, developers for the project, will soon sign a development agreement with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for construction of a central business district on the eight lane outer ring road being developed by the Andhra government.
Picture of a skyscraper in Hong Kong; courtesy: Stephen Johnson’s Photo Gallery
The project would see an investment of Rs 7,000 crore construction over seven years. “The building would be constructed in four years though the entire project is expected to be completed in seven years,” said an executive associated with the project.
The project is being developed through a joint venture in which Anil Ambani-owned Reliance Infrastructure holds 89 per cent with the remaining being held by APIIC. “We are finalising the development plan. It should take 10-15 days. The project is going strong,” a senior APIIC official told Financial Chronicle.
The SPV estimates that the lease rentals alone could bring in income to the tune of Rs 1,300-1,400 crore annually. With an estimated rentals of Rs 40-45 per square feet per month (psf pm) and Rs 60-70 psf pm, the project’s capital value is in the range of Rs 12,000-13,000 crore.
Reliance Infrastructure, the new name for Reliance Energy, had bagged the project last year after it put in a bid quoting Rs 6.57 crore an acre. The project is being developed on 80 acres of land. The company has already paid upfront Rs 11 crore to APIIC for the project along with a performance guarantee of Rs 32 crore.
The developers would be targeting hoteliers, companies in IT and IT enabled services, besides entertainment companies for leasing and selling out of space. “Some chunk of the space could be taken up by the Anil Ambani group companies for locating its offices and putting up multi-screen cinema halls,” said the executive.
News courtesy: Deccan Chronicle