Property developer Baashyaaam Constructions is in talks with Standard Chartered Bank to buy a 4.6-acre plot in Chennai in a deal estimated at about Rs 800 crore, as per industry sources.
“The land originally belonged to ANZ Grindlays Bank and was part of the takeover by Standard Chartered, with backend support being operated from there. It also has 500,000 sq ft of built area in the Nungambakkam area,” said two people aware of the development.
Property consultants say the deal is being negotiated at Rs 7.5- Rs 8 crore per ground which is higher than the prevailing market rate. One acre equals about 18 ground, a measure used primarily in South India.
“There is not much land available in central Chennai and whatever is up for sale is getting closed at a higher rate now,” said one of the persons cited above.
Baashyaaam Constructions is present in luxury residential projects, apart from commercial and hospitality. It is developing an uber-luxury twin-tower project at the site of the erstwhile five-star Crowne Plaza hotel in Chennai’s Adyar Park.
The 4.5-acre project is located close to the Boat Club, one of the costliest addresses in Chennai.
Standard Chartered denied the sale of the asset stating, “ As of today, we are not in talks with Baashyaam and or any other company regarding our property in Chennai. The 5.4 acre Haddows Road campus is an owned property of Standard Chartered and a decision will be taken at an appropriate time”.
Over the years, Chennai has been gaining significance as an office market, emerging as the third highest in the country in terms of office absorption in calendar 2023, according to CBRE.
Developers such as DLF, Brigade Group, CapitaLand, ETL Infra, Olympia Group, Mindspace REIT and RMZ Corp. have unveiled large-sized office developments exceeding one million sq. ft. in key micro markets such as OMR Zone 1, OMR Zone 2, MPH Road, and Off CBD, said CBRE.
The consultancy firm says Chennai recorded highest-ever leasing and decadal-high supply in 2023 with total absorption of 10 million sq. ft. and supply of 6.4 million sq. ft.
Chennai represents a tenth of India’s overall commercial office stock with 87 million sq. ft. in 2023. It is interesting to note that 38% of overall office stock is green certified. This shift is attributed to a confluence of factors that have bolstered the city’s appeal and competitiveness.
“Chennai’s charm as an investment destination, particularly for global and domestic manufacturing firms, is expected to drive innovation and technological advancements. With companies increasingly adopting innovative technologies such as artificial intelligence, SaaS, big data, and IoT, Chennai is positioned at the forefront of evolving trends. The growth of BFSI and E&M GCCs in Chennai is likely to further reshape the city’s office real estate momentum,” said Ram Chandnani, Managing Director, Advisory & Transaction Services, CBRE India.
