Baashyaam Constructions to Acquire Prime Chennai Land from Standard Chartered

Bengaluru: Chennai's real estate scene is set to witness a significant transaction as Baashyaam Constructions negotiates the purchase of a strategically located plot from Standard Chartered Bank. The deal, estimated at approximately INR 800 crore, involves a 4.6-acre site that previously belonged to ANZ Grindlays Bank before being acquired by Standard Chartered.

Historical Site with Robust Infrastructure

The plot, which is located in the Nungambakkam area of Chennai, includes an existing infrastructure with a built area of 500,000 sq ft. This site has been pivotal as a backend support facility for Standard Chartered following their acquisition of ANZ Grindlays Bank.

Premium Valuation Reflects Scarcity of Land

Real estate consultants have indicated that the transaction is being negotiated at a rate of INR 7.5 to 8 crore per ground, surpassing the usual market prices. This high rate underscores the scarcity of available land in central Chennai, where demand remains robust amidst a constricted supply.

Baashyaam's Strategic Expansion

Baashyaam Constructions, known for its involvement in luxury residential, commercial, and hospitality projects, is expanding its portfolio with this acquisition. The company is also developing an ultra-luxury twin tower project on the former site of the Crowne Plaza hotel in Chennai's prestigious Adyar Park, near the Boat Club—one of the city's most exclusive locales.

Real Estate Market Dynamics in Chennai

According to CBRE, Chennai's real estate market has seen unprecedented activity. In 2023, the city recorded its highest-ever leasing activity and a ten-year high in supply, with total absorption reaching 10 million sq ft and new developments contributing 6.4 million sq ft. Prominent developers such as DLF, Brigade Group, CapitaLand, and others have introduced major office developments, enhancing the city's appeal as a key business hub.

This potential acquisition by Baashyaam Constructions reflects a strategic move to capitalize on the limited premium land available in central Chennai, signaling robust confidence in the local real estate market's growth potential. The transaction not only highlights the premium valuation of centrally located properties but also underscores the ongoing demand for high-end residential and commercial developments in major Indian cities. As Chennai continues to attract significant real estate activities, especially in luxury and commercial sectors, we can expect continued interest and investment in the region.