CHENNAI: L&T Urban Infrastructure Ltd. (L&T UIL) has teamed up with Chennai-based Arun Excello to jointly promote an integrated township project at Vallanchderi on the GST Road in South Chennai.

Project "Estancia"

The project, named "Estancia", will come up on 78 acres. The project outlay is expected to be around Rs. 1,500 crore apart from the land cost of Rs. 300 crore.

Project `Estancia' will comprise a residential zone with 2,000 apartments, a clubhouse, an IT park, a school, a mall, serviced apartments and a hotel. The residential project will be launched on April 14. The first phase of the project will have 700 residential apartments and will be completed by March 2009. The entire project will be implemented in three phases and completed over four years, according to the promoters.

Addressing a press conference here on Friday, P. Suresh, Managing Director, Arun Excello, said three special purpose vehicles (SPV) would be formed by L&T UIL and Arun Excello to execute the project.

Mr. Suresh said Estancia would have a residential space of around three million square feet spread over 37 acres and an IT park spread over 27 acres with 2.7 million sq. ft. office space. It would also have a retail mall, a hotel and serviced apartments totalling one million sq. ft.

The project would also have a school on a three-acre plot.

L&T, according to its General Manager, S. Hariharan, will bring to the joint venture table its expertise in engineering, construction technology and project implementation and finance. Arun Excello, on the other hand, will bring its experience in developing residential projects, knowledge of the Chennai market and understanding of the customer needs to the project. Mr. Hariharan said in a couple of SPVs — related to the IT and commercial portion of the project — L&T would hold 51 per cent stake. Arun Excello would hold 67 per cent equity stake in the SPV pertaining to the residential portion of the project.

Hong Kong expertise

Hong Kong-based architect RMJM had been roped in to conceptualise, design and develop the master plan. An international traffic consultant's advice had been taken for planning the road infrastructure, Mr. Suresh said.

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