Left Menu
Development News Edition

Sushma group to invest Rs 325 cr on new commercial project in Mohali

PTI | New Delhi | Updated: 15-02-2020 17:30 IST | Created: 15-02-2020 17:25 IST
Sushma group to invest Rs 325 cr on new commercial project in Mohali
Image Credit: ANI

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.


TRENDING

OPINION / BLOG / INTERVIEW

Uganda COVID-19 response: Was off to a good start but reopening dwindled prospects

Uganda has shown success in using health information to enhance efficiency of disease surveillance, reporting and monitoring. The success, however, has critical challenges confronting it as the country resumes normal activities....

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Videos

Latest News

Cricket-Australia confirms playing India in all three formats

Australia will kick off its international summer with limited overs series against India in Sydney and Canberra from Nov. 27 before the four-test series starts in Adelaide as a day-night match on Dec. 17, Cricket Australia CA said on Wednes...

Bank loans scrutinized for harm to wildlife as well as climate

Campaigners called on Wednesday for global banks to stop financing industrial activities driving animal and plant species towards extinction, after a report ranked 50 lenders involved in sectors that pose the greatest threat to wildlife.Whi...

Trump slams media for 'blocking' alleged graft cases against Biden

US President Donald Trump on Tuesday slammed the mainstream media and big tech companies for blocking the alleged corruption cases against his opponent Democratic challenger Joe Biden. Nobody has ever seen anything like were witnessing righ...

English COVID data patchy, researchers say, as new dashboard launched

There are significant problems with the availability and quality of COVID-19 data in England, British researchers said on Wednesday as they launched a dashboard to help make sense of the patchwork of stats. The COVID Response Evaluation Das...

Give Feedback