The 6.85 million sq ft project will be developed in four-five phases, two people aware of the matter said. “In the first phase, L&T Realty will develop around 1.2 million sq ft that is expected to be completed by 2022,” said one of them.
The project will also have a million sq ft of residential development space.
The project is coming up on a 40-acre plot in the IT hub of Chennai that was owned by group company, L&T Valves, which was shut down a few years ago.
L&T Realty has received pre-leasing enquiries from global IT firms, the people said.
“In the Chennai market, Grade A Space is completely leased out. The L&T management is also extremely bullish on their Chennai project as it is strategically located at Porur with good availability of IT talent,” said the second person.
L&T Realty is present in West, South and North India with many residential, commercial and retail projects.
Commercial property market in Chennai, mainly occupied by IT and BFSI firms, has seen top builders like TRIL, Embassy, Brigade, RMZ, K Raheja and DLF expanding their office portfolio to tap the growing demand for Grade-A space.
Despite the overall economic slowdown, Chennai’s commercial real estate remained resilient in 2020.
Recently, Walmart Labs leased 250,000 sq ft in Chennai. BNY Mellon, which took 600,000 of sq ft, was another company that recently leased office space in the city.