Israel’s Plaza Centers in hospitality gambit

Plans mixed-use developments in Pune and Kerala

MUMBAI: Plaza Centers, an Israeli property developer, is looking at developing hotels plus serviced apartments projects in India.

The company is believed to have identified three projects   — two in Pune and one in Thiruvananthapuram—and is in the final stages of acquiring land for a third project in Pune. Its management is also in negotiations for sites in Bangalore, Chennai and Kochi, among others.

Plaza’s India officials were not available for comment and a questionnaire to the company went unanswered.

The two Pune projects are in Koregaon and Kharadi and are being developed through a 50:50 joint venture with a local partner for an estimated cost of $265 million.

While the Koregaon development will be a mix of retail, entertainment and office space, the Kharadi project will have a hotel and serviced apartment component in addition to retail, entertainment and office space. Of the total built-up area of 2,14,110 sq m, the hotel will occupy 32,630 sq m of built-up space and the serviced apartment 16,520 sq m.

Guestroom inventory of 360 and 151 serviced apartments across categories have been planned. Work will begin soon on the project, which is expected to be operational by end of 2010 or early 2011.

In Kerala, Plaza Centers has acquired 10.78 acre in Thiruvananthapuram for $25 million through an equal partnership with a leading Indian property developer.

Spread across 1,95,000 sq m, the development will have a shopping and entertainment centre, an office complex and a 37,500-sq m hotel and serviced apartment development.

Plaza Centers may sell outright, lease the property or enter into management agreements with Indian or foreign hotel companies to operate the hospitality projects.

A subsidiary of Elbit Medical Imaging Ltd, Plaza Centers entered India in 2007.

t_ashish@dnaindia.net