Rs 200-crore real estate foray by LIC south zone

Venkatachari Jagannathan
08 June 2005

Chennai: For the first time in its history, the Life Insurance Corporation of India (LIC) is making a major entry into real estate development, with a Rs200-crore plan in the south zone.

Included in the plans — an IT park and a Rs100-crore commercial complex in the heart of Chennai, housing complex for policyholders in Chennai and Trivandrum, commercial buildings in various cities like Madurai, Karur and others.

According to zonal manager G Prabhakara, construction on residential apartments is expected to commence this July. Adds chief engineer V P Rajamurthi, "We will be flexible in providing an opportunity for the allottees to design the interiors to their taste and comfort." LIC has plans to construct 485 apartments (344 in Chennai and 141 in Trivandrum) in phases.

However, the corporation's prestige project is its proposed IT park and the commercial complex. "It will be a twin-tower structure going up to eight floors with 3.5 lakh sq.feet space. We are on the lookout for a competent construction company to execute the project," says Rajamurthi. The IT park will be on a build-operate-transfer (BOT) or build-operate-lease-transfer (BOLT) basis. Interestingly the IT park will involve bringing down a landmark structure, another insurance building. "We will see to it that the new structure will have a similar façade," he adds.

LIC is also upgrading its existing buildings to realise higher rent. "We have to convince the existing tenants about this." The corporation is also planning to rent out two floors at its 14 floor of the LIC building on Chennai's Anna Salai.

Apart from constructing its own buildings, LIC also provides construction consultancy to other public sector organisations. After selling a 3-acre plot to Indian Overseas Bank, it is now building a residential complex there.