bengaluru: Vaishnavi Group to renovate the Chalukya hotel in Bangalore

Real estate company Vaishnavi Group and the owners of the Chalukya Hotel in Bengaluru are finalizing the terms of a deal under which the iconic property will be redeveloped into a Class A office complex, people at ET have told. current of the plan.

The redevelopment of the property, which belongs to Mohammed Iqbal, is expected to take two years from the date of obtaining the required approvals. It will offer 150,000 square feet of office space, the people quoted earlier said.

“The Vaishnavi Group and the landowners who manage the hotel are finalizing the terms of the joint development agreement, and the deal is expected to close within two weeks,” said two people with knowledge of the transaction.

The Samrat Restaurant at the Chalukya Hotel, located in the heart of the city, a stone’s throw from Vidhana Soudha, has been popular among politicians, bureaucrats, tourists and locals since 1977.

“The popularity of the hotel is such that the circle of Basaveshwara, where the hotel is located, is commonly referred to as the circle of Chalukya. It is a landmark,” said one of the previously quoted people. “Vaishnavi is seeing if they want to keep the brand name as Chalukya or go for a rebrand.”

Vaishnavi Group Chairman CN Govindaraju could not be reached for comment.

Vaishnavi Group has been developing commercial spaces for more than two decades now. It had leased 1.5 million square feet last year.

In the commercial and office segments, the real estate company’s projects in the pipeline offer a total of 4 million square feet of space. Of this number, it is planned to launch 3 million square feet in the near future.

The residential segment of Bangalore continues to witness high uptake after the market recovery and higher pre-commitment from businesses for large office spaces.

According to real estate consultant JLL, from an overall rental market perspective, rental activity from January to September 2022 in Bangalore stood at 8.2 million square feet (23% of total rental activity). India), which is already equivalent to the figures for the year 2021.

In the first nine months of 2022, the Bangalore residential market recorded record sales of 35,446 units.

Going forward, demand is strong and net absorption is also expected to improve. However, some near-term easing is likely due to prevailing and developing global headwinds where companies are looking to the macroeconomic environment and their global headquarters to make forward-looking real estate decisions. In the residential segment, affordability is expected to decline slightly as prices rise (as input costs are passed on) and interest rates rise, making home loans more expensive, JLL said.

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