Hiranandani group, one of the country's leading realty firms, will invest around Rs 8,500 crore over the next three years to develop data centres and industrial parks across various cities as it is bullish on growth prospects in these two verticals, a top company official has said.
In an interview with PTI, Mumbai-based Hiranandani group founder and chairman Niranjan Hiranandani said the real estate market has recovered quite a lot after the severe impact on sales during the April-June quarter because of the lockdown in view of the COVID-19 pandemic.
Housing sales in November were 20 per cent up on an average across major cities, as compared with the same month last year, said Hiranandani, who is also National President of two leading industry bodies Assocham and Naredco.
Still, Hiranandani expects sales to be lower by 15-20 per cent during 2020 calendar year compared with the last year.
Going by the progress in vaccine development, he hoped restoration of normal business activities by March next year.
Asked about the overall development in the company, Hiranandani said: "We have set up the Asia's largest data centre in Navi Mumbai. We are now planning second data centre in Greater Noida and third one near Chennai." "We are going very aggressive on data centre side," he added.
Last year, Hiranandani Group had forayed into development of data centre parks with its new business venture Yotta Infrastructure, to tap rising demand of data storage capacity.
The first data centre is located at Panvel. The first phase of this project comprising 8.2 lakh sq ft has already been inaugurated in July this year. Yotta Infrastructure will invest around Rs 5,000 crore over the next 3 years as it aims to capture about 25 per cent of market by end of FY 2025, he said, adding that the investment numbers will go up substantially over the next 7-10 years.
Similarly, Hiranandani said the company is developing industrial, logistics/warehousing parks through a joint platform with global investment firm Blackstone.
Greenbase Industrial and Logistics Parks the joint venture firm, will invest Rs 3,500 crore over the next three years to develop projects across various locations, he added.
Greenbase will develop two industrial parks at Talegaon and Nashik in Maharashtra and one at Oragadam near Chennai, he said.
The JV is looking to develop more industrial parks.
Asked about source of funding for planned investments, Hiranandani said it is being financed through equity and bank loans.
He said the group's debt level is comfortable and secured against the rent yielding assets and completed housing stocks.
The Hiranandani group has around 2,000 acres of land bank across major cities for development of housing, commercial, data centre and warehousing projects.
Yotta Infrastructure, a 100 per cent subsidiary of Hiranandani group, is into designing, building and operating large-scale hyper density data centres. It offers hyper-density, hyper-scalable data centre and co-location solutions to enterprises along with a whole array of supporting managed IT, hybrid multi cloud and security services.