IIDL to become real estate guru

It’s the time for noted Indian financial institution IFCI to enter the sphere of real estate and the same will be done. This was stated emphatically recently and as per the institution, IFCI will increase its presence in the real estate business gradually. What is more, after the introduction of its serviced apartment project in Delhi, the institution’s real estate arm IFCI Infrastructure Development Ltd (IIDL) will launch three similar projects in Lucknow, Guwahati and Chennai.

The Industrial Finance Corporation of India (IFCI) was established by the then government on July 1, 1948, as the first Development Financial Institution in the country to cater to the long-term finance needs of the industrial sector. The newly-established DFI was provided access to low-cost funds through the central bank’s Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates.

The institution’s real estate arm is not sitting idle at the moment and has already stared making potent preparations. It, so as to make the serviced apartment attractive for foreign traveler, has already signed contract with Singapore’s Frasers Hospitality to manage its serviced apartment property named Fraser Suites in the capital city. Apart from this, IIDL is planning to develop a total of two million sqft area in the three cities.

According to Atul Kumar Rai, CEO and MD of IFCI, IIDL would shortly start developing serviced apartments at other locations in order to connect the gap in demand and supply of good guest accommodations in important cities. He also said that the company would also prefer to purchase lands in the auctions of governments land development authority.

IIDL, which has a land bank of 3.5 million sqft, has plans in hand to develop 2 million sqft commercial space. CEO of IIDL said that if they get other eye-catching proposal to build up residential projects, they would certainly consider them also.