Prajay Engineers Syndicate Ltd, the Hyderabad-based real-estate developer, is close to forming three joint ventures with overseas firms for its upcoming hotel projects in southern India.

Sources said the company is negotiating with three hotel chains in the US, Europe and Far East for the 50:50 joint ventures. It may, however, acquire a minority stake in one of the JVs.

Prajay Engineers has also finalised a couple of 4-star and 5-star hotel management tie-ups, which will be officially announced in June.

Prajay Engineers currently has 850 acres of land, the market value of which has been pegged at Rs 2,50,000 crore. The company plans to use about 8% of the total land for its hotels and hospitality business.

When contacted, N Ravinder Reddy, director-operations, Prajay Engineers Syndicate Ltd, told DNA Money, “We are looking at more joint ventures for our different upcoming hotels and residential projects. But nothing has been finalised as of now. We will inform the exchanges as and when any JV is formed in the near future.”

Reddy further added that the company plans to develop more than 2,000 hotel rooms by 2011. Of this around 700 would be in the 5-star category and the rest in the 3-star and budget segments.

The three of the proposed Celebrity hotels, including the 5-star one would be set up in Hyderabad, while the budget hotel, has been planned in Visakhapatnam. The company is currently setting upmarket residential condominiums in Hyderabad in partnership with Malaysian property developer Sunway City.

Analysts said unorganised players dominate the Hyderabad real estate market. Biggies like DLF, Hiranandani, Rahejas have now lined up plans to grab a pie of this growing real estate market.

SOURCES:
DNA Money