Sushma group to invest Rs 325 cr on new commercial project in MohaliPTI | New Delhi | Updated: 15-02-2020 17:30 IST | Created: 15-02-2020 17:25 IST
Realty firm Sushma group on Saturday said it will invest Rs 325 crore to develop a mixed-use commercial project in Mohali to tap rising demand of office and retail spaces from corporates and co-working players. The company will develop 1.2 million sq ft area in this 7-acre commercial project Sushma Pristine on airport road in Mohali, its Executive Director Prateek Mittal said.
"There is a great demand for office and retail space from both end-users as well as investors. So, we are coming up with this green mixed-use commercial project," he said. Mittal said the company is selling office space at Rs 7,500 per sq ft and retail area in a price range of Rs 9,000 to Rs 17,000 per sq ft.
The company will have the leasing right and expects an annual yield of 8 percent for its prospective customers, he said. "The project cost is around Rs 325 crore, which will be funded through internal accruals and bank loans," Mittal said.
Out of the total 12 lakh sq ft area, the company would develop 3.5 lakh sq ft of office space and 3.75 lakh of retail area, while the remaining area would be for hotel and serviced apartments. Mittal said this is the company's fifth commercial project, of which, three have already been delivered. It is already constructing a high-street retail project, comprising 3.5 lakh sq ft area, at a cost of Rs 170 crore.
On residential, he said the company has so far completed seven projects and the construction work is in process in five projects. Mittal said the housing market in and around Chandigarh is sluggish and end user-driven. Investors have shifted to commercial assets, which are providing decent returns.
However, he said the situation is not so bad compared to other markets as there have been few launches of housing projects in the past two years. Last year, Punjab-based Sushma group bought 60-acre land from the Shipra group for Rs 250 crore. It raised Rs 110 crore from IIFL to part-finance this land deal.