Diversified conglomerate Kanakia Group plans to invest more than Rs 500 crore over the next two years for developing residential and hotel properties, a top company official said.
At present the group owns the 331-room Marriott Courtyard hotel in Mumbai and a 185-key Novotel property in Ahmedabad and now they are roping up for Hyatt Place property,” Kanakia Group chairman Rasesh Kanakia mentions.
“Our focus in the coming years will be on developing hotel and residential properties. We plan to invest more than Rs 500 crore over the next two years, which will be utilised for buying land parcel and construction,” he adds further.
With a portfolio of over 13 million sqft across categories including residential, commercial and hospitality, the company currently has 13 lakh sqft of area under development in the residential space and 15 lakh sqft in the commercial segment.
The cost of land and construction is expected to be about 150 crore, which will be financed through a 50:50 debt-equity structure, the chairman said. The hotel is expected to be ready in the next 18 months. In 2012, Mumbai-based Kanakia Group had sold its entire stake in multiplex chain Cinemax India for 400 crore. The group plans to focus and invest funds from this stake sale in its real estate and hospitality ventures, its chairman said.
We are looking to build a portfolio of hotels in our hospitality subsidiary before we take a call on offloading stake to a strategic partner at entity level,” Kanakia said. “We are also looking at more beachfront options in Goa.”