Eco-habitat developer Organo is looking to invest Rs 900 crore in acquiring 1,800 acres of land across Hyderabad and Bengaluru to develop townships, sources told ET.
The Hyderabad-based company is betting on demand growth in self sustainable cities and people wanting to live away from cities after the Covid-19 pandemic.
Organo’s founder Nagesh Battula said the company is looking to develop townships but did not confirm the investment figure. “We are currently looking at projects across product types with an order book of Rs 3,000 crore and turnover of Rs 900 crore, targeting 3% of the total TAM for alternate real estate in India.” Battula said.
“In Rurban (a mix of rural and urban) communities, there is very little speculation on land price and the majority of the cost goes into constructing building infrastructure and installing technologies for sustaining the community. The land price amounts to only 11% of the overall cost,” he said.
Building Rurban communities is unlike typical real estate investments where the project value is majorly derived from the speculative nature of land price and developments that take place around the project.
A Meraqui report 'Emerging Residential Niche Products’ says that the target addressable market (TAM) for alternate real estate is expected to reach $4.3 billion by 2022.
In Hyderabad, the company’s projects with a total value of Rs 450 crore are coming up on a 70-acre land parcel and are expected to be completed by 2023.
While, in Bengaluru, the company has identified land parcels of 63 acres (254 villas) and 50 acres (150 villas) to the north of Bengaluru with a total project value of Rs 372 crore and Rs 270 crore, respectively.
“With our cities being choked due to high population density, we are consuming polluted water, breathing polluted air and eating polluted food. Counter - urbanisation is one possible solution to reduce stress on our cities and improve our health and well-being,” said Battula.
To read the original article visit Economic Times, written on Dec 21 - 2020 here
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