Haneda And Rajathi Group Formed JV
Malaysia-based Haneda Trading and Construction and Chennai-based Rajathi Group of companies have formed a 51:49 joint venture, Haneda Rajathi, to undertake a series of projects to design, construct and develop large-sized commercial and residential properties. The JV is said to have orders on hand of over Rs 500 crore, including 15 commercial hotels to be developed for the Breeze Hotel chain, which is part of the Rajathi group. Apart from exposing the Malaysian company to the domestic market, Rajathi group is keen on using Haneda’s expertise to engage in contract works in the realty space. These would include projects across Chennai, Coimbatore, Tuticorin, Sriperumbadur, Ramanathapuram and Rameswaram, the Rs 440 crore Rajathi Group JMD, Madan Prakash told reporters here on Friday.Ongoing projects, that are expected to take-off are the Rs 132 crore 450 unit project at Shollinganallur. Spread on 4.5 acres, the design and construction contract is slated to be completed in three years, RS Ashok, CEO, Haneda Rajathi said. It has also taken up a Rs 160 crore IT park project in the same corridor, on five acres. It plans to take up an IT SEZ project on Old Mahabalipuram Road for Platinum. The JV is executing most of the projects for the Sunshine group in the city.
It also completed a 14-luxury-villa ‘Lake View’ project for Rs 70 lakh in Coimbatore in 11 months. “We wanted to have a signature project in the textile town,” he said, adding it has finished the Rs 20 crore first phase work at the Balaji Institute and Engineering Technology in Thiruporur area. Of the Rs 500 crore hotel projects coming up at various places like Coimbatore, Tuticorin, Madurai, Krishnapatnam and Sriperumbadur, Mr Ashok said the company expects to post a revenue of Rs 150 to Rs 175 crore.
The hotels in the three star category would have 75 keys each with rack rates ruling between Rs 2,000 and Rs 3,500 depending on the location. Haneda Rajathi, floated last year, is eyeing a turnover of Rs 150 crore to Rs 200 crore by March 2009. It is in talks with an international hospitality major for raising private equity , Mr Rajathi added. With Japanese multinational contractors driving the growth of the Malaysian entity, M Gunalan, ED, Haneda Rajathi said the new partnership with Rajathi is looking at foraying into Vietnam and Sri Lanka as well.
