Embassy Partially Acquires SEZ Project from SNP Infra in Chennai
Embassy Group has partially acquired a stalled SEZ (special economic zone) project in Chennai from SNP Infrastructure for an undisclosed amount, two people aware of the development said, reports Sobia Khan.
The 26-acre property on Thoraipakkam-Pallavaram road is close to the airport. Land on Pallavaram road costs about .₹ 20 crore per acre.
“The SEZ project was shelved in 2008 by SNP due to bad market condition. It will be partial buyout and partial joint development,” the people cited earlier said.
Mike Holland, CEO of Embassy Office Parks — a joint venture between Blacksto-
ne and Embassy Group — refused to comment on the matter. “The structure is ready and Embassy will soon start construction,” said one of the persons quoted earlier.
While Embassy will build office property over 4 million sq ft, the remaining will be used for integrated development comprising residential and retail components.
In the recent past, Chennai has seen a spurt in land transactions, with a majority of investments coming in office assets. The biggest deal during this period involved Canada Pension Plan Investment Board and Shapoorji Pallonji Group’s joint venture company SPREP acquiring SP Infocity IT Park in Chennai for $220 million (or .₹ 1,460 crore).