Lalit Suri buying Balaji’s 7 Star Hotel

Chennai is getting a 7 star hotel. The unfinished 7 star hotel of Balaji group at Anna Salai, where Abbotsbury once was, is changing hands with Lalit Suri acquiring the property for Rs 390 crores.

Where Abbotsbury was

Located at Teynampet, on Anna Salai, the property has come up over 83 grounds. Presently one ground costs about Rs 3 crore (1 crore=10 million). Launched over a decade ago as Magunta Oberoi was proposed to be Chennai’s first seven star hotel, complete with a helipad. The hotel when completed will have 320 rooms and 2.5 lakh sqft of commercial space.

Mr Suri is the sigle largest hotel owner with complete majority in his properties.

Balaji group getting caught in a financial crisis the project could not be completed in time and consequently the Oberois walked out of the project in 2000. Over the last one year, the Oberois were also in the race to acquire the property along with Leela and Gold Quest for acquiring the property.

Though the civil structure is almost 80% complete, another Rs 100 to Rs 125 crores is to be pumped in to complete the project. With the commercial space quoting between Rs 5000 to Rs 6000 per sq ft, the new buyer can recover about Rs 100 to Rs 150 crore by selling the 2.5 lakh sq ft commercial space.

Its good to see an unfinished property becoming a productive asset at Chennai

(with inputs from Economic Times, dt June 5, 2006)

2 Comments so far

  1. SLN (unregistered) on June 5th, 2006 @ 1:28 pm

    Thats really a good news. Hope the present eyesore becomes a landmark soon enough

    Cheers
    SLN


  2. haha (unregistered) on June 5th, 2006 @ 4:58 pm

    the building looks bad



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