1-OAK has acquired a seven-acre land parcel in Ayodhya and is in talks to acquire another three-acre plot for mixed use development with an investment outlay of Rs 350 crore, said its CEO Sandeep Singh Katiyar.
Total cost of the project would be Rs 350 cr of which 20 million USD will be invested by the company and balance will be managed through project accruals.
“Due to the influx of tourists, Ayodhya is going to be a hotspot in the future. We will have the benefit of being an early mover. We plan to develop the project in phases to monetise it in a better manner,” Katiyar told ET.
The company, promoted by Singapore-based Greenfield Advisory Pte. Ltd, which develops residential and hospitality projects, has decided to focus on tier 2 cities in India. It has acquired land in Lucknow, Thiruvananthapuram and Jaipur.
The Uttar Pradesh government has identified 1,100 acres of land in and around Ayodhya for acquisition for planned residential, commercial and retail development. Besides, private developers have started acquiring land for future projects, expecting an increase in demand.
Following the ground-breaking ceremony of the Ram temple, land prices and the number of deals in Ayodhya have surged 50%.
“In the first phase of the Ayodhya project, we will develop 300,000 sq ft while over 400,000 sq ft will be developed in the second phase. Once we acquire the remaining three acres, additional development will be taken up,” said Katiyar.
The company has planned a high-street concept for retail development while residential societies will be mid-rise.
“We have an aggressive plan of development across India and we are already getting a good response for our existing projects,” said Katiyar.
The company’s focus in India is largely on transforming the living experience in tier 2-3 cities where increasing disposable incomes and ease of living have opened up the luxury housing segment.
Greenfield Advisory, which provides investment platforms to institutional and accredited investors, will infuse funds in the project.
As per estimates of the Ram Temple Trust, the Ram temple, once ready in 2022, could see 80,000 to 100,000 visitors daily.
Property prices in the city were estimated to have shot up 25-30% in 2019 immediately after the court verdict that paved the way for the building of the Ram temple.
