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L&T bets big on real estate;

Submitted by TheIndiaStreet on June 20, 2007 - 12:18pm.
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bags Rs 610 cr order from Dubai co...

Source: INDIATIMES NEWS NETWORK

Larsen & Toubro and Eastern Contracting LLC (Eastern) have jointly bagged an order worth Rs 610 crore from Victory Heights Golf Residential and Development, to build a residential property in Dubai Sports City. The project is expected to be completed in 660 days. The order win spurred L&T shares to an intra-day high of Rs 1,967. At 12:45PM, the shares were up 1.39% at Rs 1,954, with volume traded on BSE at 1,27,451 shares against the two-week average of 2,22,564.

L&T and Eastern Contracting, a Bukhatir group company which undertakes a variety of turnkey and other construction projects in United Arab Emirates, have formed a joint venture to execute this project. Taking a cue from rising demand for commercial and residential projects in India, L&T expects to carve out a niche for itself. The engineering major is planning to invest Rs 8,000 crore in real estate and urban infrastructure over a period of three to five years through its subsidiary L&T Infrastructure Development Project, according to media reports.

The company has already invested Rs 700 crore in real estate and urban infrastructure projects. The management will also be investing an additional Rs 500 crore in the business this year. L&T Infrastructure is developing residential projects in Chennai, Vishakapatnam and Colombo, apart from an integrated township in Chandigarh in association with a local builder. The company recently acquired land in Nagpur for a residential project. L&T Infrastructure has also undertaken a redevelopment project of a dilapidated building in Mumbai along with Bombay Dyeing.

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