Project Information Memorandum (PIM)rlda.indianrailways.gov.in/works/uploads/File/... · · 2015-10-27In case of commercial ... Primary Catchment (upto 5 km radius from study region)

Project Information Memorandum

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RAIL LAND DEVELOPMENT AUTHORITY

A Statutory Authority under Ministry of Railway Government of India

Project Information Memorandum (PIM)

for

Grant of lease for Commercial Development on approx. 5.584 acre of Vacant Railway land at Padi, Kakkapallam Village, Ambattur Taluk, Trivallur District, Chennai,Tamilnadu

Rail Land Development Authority Near Safdarjung Railway Station Moti Bagh-1, New Delhi-110021


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Disclaimer The information provided in this Project Information Memorandum (PIM) is solely for information and RLDA shall not be responsible for any inaccuracy in it. Each Bidder should conduct their own investigations and analysis, and should check the accuracy, reliability and completeness of the information in this PIM and wherever necessary obtain independent information from appropriate sources. RLDA, their employees or any of its agencies/consultants/advisors make no representation or warranty and shall incur no liability under any law, statute, rule or regulation as to the accuracy, reliability or completeness of the PIM.


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INDEX

SN Description Page No. 1 Introduction

4

2 Description of Property

5

3 Salient Feature

5

4 Location of Property

6

5 Distance from Landmark

6

6 Catchment Delineation

6

7 Infrastructure Availability

7-8

8 Location of subject site

9

9 Site boundary Railway Land

10

10 Macro Real Estate Trends

11

11 Development Control Norms

12

12 Site Potential & Opportunities

13

13 Photographs of Site

14

14 Land Title-Annexure -1

15

15 Annexure-2

16


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1. Introduction

The Indian Railways is desirous of a commercial development on their plot located at Padi, Chennai as railway operations are not envisaged on this plot in the foreseeable future. The said objective is being carried out by Rail Land Authority Development (RLDA), a statutory body of Indian Railways formed through an amendment to the Railway Act, 1989. By this amendment, the Railways are authorized to carry out commercial development of railway land. Jones Lang LaSalle Property Consultants (India) P Ltd. has been appointed by RLDA as project advisors for assisting them in carrying out an assessment of the real estate potential of the plot located at Padi in Chennai and to select a developer through an open, competitive bidding process. Jones Lang LaSalle was involved in the site survey, assessment of on-site infrastructure, stakeholder interaction, discussions with development authorities and site analysis with respect to the macro and micro real estate market trends which led to identification of the development options and product mix. This PIM provides the site information, development controls and building guidelines based on the above assessment. Applicants are advised to make an independent assessment of the project at their end, make site visits and carry out necessary investigations and due diligence. Jones Lang LaSalle or Rail Land Development Authority is not liable in relation to the accuracy or completeness of the information contained in the Information Memorandum and any liability therefore is hereby expressly disclaimed.


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2. Description of the Property

Property Attributes

Property Land Parcel located at Kakapallam Village, Padi, Chennai

Property Address Kakkapallam village, Ambattur Taluk, Tiruvallur District bearing survey nos 45

Present Use Vacant Land

Details of Subject Property

Size of Land 5.584 acres (22597.81 Sqm)

Access Road NH 205 - Chennai Tiruvallur Highway Road

Frontage Approximately 132 feet

Shape Irregular

Visibility Excellent from NH 205 - Chennai Tiruvallur Highway

Neighborhood and Surroundings

North TVS-Lucas Factory

East TVS-Lucas Factory

West TVS-Lucas Factory

South NH 205- Chennai Tiruvallur Highway Road

Legal and Regulations

Title Clear Title in the favour of ICF

FSI Achievable 2.5 as per Development Control Regulations, Chennai Metropolitan Development Authority (CMDA)

Zoning Industrial

Disposal Route Land Lease for 45 years

Best Use Retail and Hotel Development

10% OSR

The developer shall apply and obtain Planning Permission from Chennai Metropolitan Development Authority as provided under Section 49 of the Act after complying with all regulations, (including 10% reservation of OSR and transfer of rights of ownership or lease hold rights as the case may be for the same).

3. Salient Features

The site is strategically located along Chennai Tiruvallur Highway (NH-205) 60 feet wide road in the Kakkapallam village in Padi, Chennai. Site falls under New Chennai Corporation Limits.

The site is well connected to the Chennai CBD and is located in close proximity to the Inner Ring Road (100 feet road).

The site located in close proximity to the proposed Metro station at Anna Nagar, Chennai

The site has good connectivity from Padi junction (leading to Anna Nagar, Ayanavaram, ICF, Ambattur and Avadi). The site though located primarily in an industrial belt, enjoys a good residential catchment. Proximity to areas like Ambattur, Padi, ICF, Anna Nagar, Perambur, Ayanavaram and Villivakkam facilitates good real estate development.

Connectivity by rail and fly-over at Padi Junction is an added advantage for real estate development.


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The existing land use of the site is industrial, where residential, mixed residential and commercial uses are permissbile as per Development Regulations of Second Master Plan for CMA 2026. In case of commercial development, re-classification of land use is not required. However no residential development is permitted by RLDA.

4. Location of Subject Property

5. Distance from Landmark

* The time travel is on a weekday peak hour.

6. Catchment Delineation

Location/ Area Characteristics Potential for development

Primary Catchment (upto 5 km radius from study region)

Padi Activity Focus: mainly industrial Planning Agency: CMDA Remarks: Primarily an industrial area with various automotive industries located in the region

Huge potential for development, keeping in mind various infrastructure initiatives announced by the govt.

Mogappair

Activity Focus: Mainly Residential in nature Planning Agency: CMDA Remarks: Fastest growing residential neighborhood

Close to saturation point as land availability is minimal.

Landmark Distance from site (km) Travel Time (min*)

Chennai Airport 16 45

Chennai Central Railway Station 9 25

Chennai Mofussil Bus Terminus 6 15

T Nagar (Retail Business) 10 30

Guindy 14 30

CBD 12 30

Ambattur 5 15

Anna Nagar 4 15

80º 15’ E

13º 4’ N

Subject property

N


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Location/ Area Characteristics Potential for development

in western Chennai

Ambattur Activity Focus: Mainly Industrial and large amount of IT park presence is seen Planning agency: CMDA Remarks: Primarily an industrial area with all activities being industrial and related activities.

Ambattur being mainly a part of an industrial estate comes under the purview of SIDCO and is the center for industrial and industrial related activity / development as per the SIDCO

Secondary Catchment (covering 5-10 km radius from study region)

Villivakkam Activity Focus: Working class population existent Planning Agency: CMDA Remarks: Located in between Ambattur, Padi on one side and Kilpauk on the other.

New flyovers and emerging multiplexes that have come up in this area have changed its appearance

Avadi Activity Focus: Defence related establishments present. Planning Agency: CMDA Remarks: Situated 23 km north of Chennai, primarily houses Defence establishments

Being one of the largest municipalities in the state and relatively low development, Padi has a high potential growth.

Anna Nagar Activity Focus: High end retail and posh residential catchment. Planning agency: CMDA Remarks: Amongst the most expensive areas within the catchment with very limited land availability.

Already a major residential and retail area with extensive road networks present.

Koyembedu Activity Focus: small scale retail and average housing activity seen. Planning agency: CMDA Remarks: Amongst the largest bus terminus in the state present in the area.

Proposed Metro rail network would be passing through this area and would connect with the existing airport.

Tertiary Catchment (covering 10-15 km radius from study region)

Ayanavaram Activity Focus: Peripheral Commercial areas of the city Planning agency: CMDA Remarks: Mainly govt owned social welfare establishments present

Potential for development exist as not many residential / retail activity is seen.

Perumbur Activity Focus: Major railway hum of Chennai Planning agency: CMDA Remarks: Railway coaches manufacturing units mainly present

Has god infrastructure and connectivity facilities present, but lacks quality housing developments

Guindy Activity Focus: IT parks and manufacturing units st up in the vivinity Planning agency: CMDA Remarks: Primarily seen as an extention of the OMR IT Corridor has many IT parks present

Good infrastructure present that can fuel future growth.

7. Infrastructure Availability CRITERIA CHARACTERISTICS

Site Area 5.584 acres

Present Use The site at present is open and being used as Industrial Landscape with few existing elements like Flag post, walkways. Three wells present inside the site are used as source of water.

Surrounding Areas The site is surrounded by many existing industries and residential neighborhood of Padi.


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Access Road The site abuts existing NH 205 -Chennai – Tiruvallur High Road of approx. 60 feet width

Frontage on Major Roads

The site has 132 feet frontage on NH 205.

Topography The site is generally flat with slight undulations in the center.

Water Availability Excellent. All the wells present inside the site have very good high water table.

Major Infrastructure Project

Padi grade separator has started functioning since March 2009.

The site is located in close proximity to proposed metro rail network

Limitation Construction of Residential Complex is not permitted by RLDA.


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8. Location of subject site at Padi, Chennai

To Ambattur

To Annanagar Chennai Tiruvallur

Highroad

Jawaharlal Nehru road

TVS Lucas Company

Wheels India Ltd

Sundaram Clayton Ltd

Singaram Pillai School

Americorp Towers

Thirumal Marriage hall

Sneham Apartment

Padavattamman Temple

Thiruvalleshwar Temple

Srinivasa Marriage hall

Korattur –

Residential area

Retail Shops

Retail Shops

Retail Shops

Retail Shops

Annanagar

western Extn.

Padi-

Residential area

To Redhills

Padi Junction

Padi

Rly. Stn.

Subject Site (5.584 Acres) To Villivalkam


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9. Site Boundary Railway Land

10. Macro Real Estate Trends

Residential Sector Padi, Korattur, Villivalkam, Ambattur and Anna Nagar among other areas have created their own demand due to their proximity to Chennai Central Business District and Ambattur Industrial Estate which is developing into one of the major IT hubs of Chennai. The demand for apartments at these locations is from the high and middle-income sections of the city’s population. Apart from the reputed developers, local developers are also coming up with residential developments (constructions with less than 12 flats per building) to cater to the growing demand.

Development of residential units has been generally by small scale developers except for the projects announced by developers like Alliance, Ozone and PVP Ventures. Hence, there is a demand for large scale high end quality apartments in the region.

This region has witnessed residential development by a lot of local developers like DABC, Golden Homes and Sterling Estates etc.

Lack of large land parcels in this region is an important factor for the absence of well-known national level developers.

Commercial Sector About a decade ago, Ambattur was a flourishing automobile centre. But today, with the mushrooming growth of the city, this region is attracting many IT/ITeS companies. Sixty percent of the automobile business has closed down in Ambattur. Now, these sick industries have started attracting software firms. There are over a dozen IT/ITeS companies in Ambattur and the number is definetly on the rise.


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As discussed above, the commercial development in the region is mainly contributed by IT parks. These are either promoted by Government or have been jointly developed by Government and private developers or by private developers solely. These developments range from being standalone single tenant occupied campus facilities to multi-tenanted buildings. IT parks are predominant in this region for two reasons: 1. Eligibility to utilize additional IT FSI and 2. Growing demand for IT/ITeS office space Ambattur is now seen as Chennai’s second IT hub (the first one being IT corridor along the Old Mahabalipuram Road) with the decade-old Ambattur Industrial Estate being aggressively promoted as an alternate location in north Chennai for IT companies to have their development centres. In the industrial estate, HCL, Perot Systems, Dexterity, Prince Info Park, Arihant Insight and TCS have opened plush offices with large floor plates. The entire infrastructure within the Ambattur Industrial Estate is being upgraded through an SPV called CAAIIUC (Chennai Auto Ancillary Industrial Infrastructure Upgradation Company). CAAIIUC will develop a lot of common facilities such as a state-of-art testing and calibration centre, a business information centre, sports facilities and greater internet connectivity among all stake holders. AIEMA (Ambattur Industrial Estate Manufacturers’ Association) has taken an initiative to improve road and drainage infrastructure in Ambattur. Commercial development in Ambattur has been facilitated due to its good connectivity with to Chennai city through rail and road network and also due to relatively lower construction cost which has resulted due to low labour cost and also due to the presence of several cement, sand and steel companies within Ambattur, thereby reducing the transportation costs. There are over two lakh people employed in the industrial estate and with more software companies coming up, the number will increase by approximate another one lakh soon. There is also a considerable requirement of non IT commercial space in the Ambattur region due to its good connectivity and its close proximity to Chennai CBD.

Retail Sector

Anna Nagar, Ambattur and Perambur have started to develop as preferred retail destinations owing to their rapid development and increasing demand for IT/ITeS services. Major retailers like Marry brown, Mercedes Benz have already set up their outlets in Ambattur. Anna Nagar, which falls within the primary catchment of area of Ambattur is one of the most preferred retail destinations in Chennai, and is located at a distance of only 3 km from the subject site. Anna Nagar houses a good number of high street retail catering to the residential population. Reliance fresh, Spencer’s daily, Ponnu's market, Golden Super Market are some of the local shopping centers in the region. Retail development has started coming up along the Inner ring road. Lot of hyper marts like Big Bazaar, Reliance Fresh, Spencer’ s Daily among others have come up in the region to cater to the increasing residential demand. The existing and proposed IT parks are expected to create a huge demand for organized retail development in the study region.

Hospitality Sector The hotel industry in Southern part of India iswitnessing growth at a rapid rate. Chennai has an established list of star and budget hotels; with new hotels ones being continuously added. The city acts as a hub for business conferences and as a Centre for South Asian medical and tourism related conventions, which has resulted in generation of high volume of traffic. Chennai is dotted with a number of star hotels and business class hotels with The Taj, Le Royal Meridian, Radisson, Trident, Chola Sheraton, ITC Park Sheraton and Windsor Park being the most prominent names. These hotels have an average occupancy of 75-80% throughout the year. Currently there are no prominent Hotels in the subject site region. But positive factors viz. proximity to Chennai CBD, IT/ITeS Parks, Industrial Area and Koyambedu bus Terminus may facilitate setting up of a Hotel in this region.

Conclusion

Development pace of Real estate sector in Padi region has appreciated considerably in the recent years with the region having excellent infrastructure facilities to support Commercial, Retail and Hospitality developments. RLDA do not allow construction of Residential Complex.


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Ambattur is enjoying the presence of many industries and IT/ITeS units which in turn have generated substantial demand for Hospitality sector. Major Industries operating in the region are TVS-Lucas, Britannia, TI Cycles, Dunlop etc., with major IT/ITeS firms in the catchment being HCL, TCS, Perrot system and RR Skyline among others. The site catchment also enjoys the presence of popular hospitals (such as MMM Hospital, Sri Devi Hospital, ICF Hospital), renowned schools (viz. Vivekananda Vidyalaya, Bhakthavatsalam, SBOA), famous supermarket giants (Subiksha, Nilgiris, Spencers Daily, Reliance Fresh, etc.), renowned eating joints (Saravana Bhavan, Vasantha Bavan, Thalapakattu Biriyani, Adyar Anandha Bhavan, etc) and theatres (Shanthi, Radha, Maruthi, Lakshmibala to name a few). The growth of commercial development in the site region is further accentuated by the natural population growth of the city and the economic development brought about by the presence of large scale industries and IT/ITeS sector units. These have resulted in developing Padi region as one of the fastest emerging real estate corridors/ destinations.

11. Development Control Regulations (Category III will be applicable for subject site)

Sl.No Description Category I(a) Category I(b) Category II Category III

A Minimum Plot extent 1200 sq. m. 1200 sq. m. 1500 sq. m. 2500 sq. m

B Minimum Plot width/frontage

25m 25m 25m 40m

C Minimum Road width 12m 15m 18m

D Maximum FSI 1.5 1.75 2.5 2.25 2

E Maximum coverage 30% 30% 30% Above 30% up to 40%

Above 40% up to 50%

F Maximum height above G.L

G+6 or Stilt+7 floors subject to

a max. 24m

G+8 stilt +9 floors subject to

a max. 30m

60 meter where the width of the abutting road is minimum 18 meters, and exceeding 60 meters where the width of abutting road is minimum 30.5 meters, subject to such

conditions as may be necessary.

G Minimum set back all around

Height of the building above ground level

Minimum required setback space from the property boundary

Above 15.25m upto 30m 7m

Above 30m For every increase in height of 6m or part thereof above 30.5m, minimum extent of setback space to be left additionally shall

be one meter.

H Spacing between blocks in case of group developments

Height of the building above ground level

Minimum required spacing between blocks

Above 15.25m upto 30m 7m

Above 30m For every increase in height of 6m or part thereof above 30.5m, space to be left

additionally shall be one meter.


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12. Site Potential & Opportunities

Location:

Proximity to Central Business District and Commercial areas of the city.

Falls within the area of New Chennai Corporation Limits

Located at an approx. distance of 8 km from Central Railway station with Padi and Korattur Railway Stations

being located in close proximity

Lying in close proximity to upcoming metro station at Anna Nagar

The site has close proximity to industries like TVS Lucas, Brakes India, Wheels India, Sundaram Clayton,

and Ambattur Industrial Estate.

Size and Title

With an approx. size of 5.584 acres, the subject site is one of the largest parcels of land available within 5 km

radius of the CBD.

Clear title (A copy of Land Title is enclosed as Annexure-1 & 2)

Access

The site has excellent Rail and Road connectivity through Jawaharlal Nehru Road (100 ft. wide ) and MTH

Road (NH 205 and rail connectivity)

Rail – Korattur and Padi railway stations

Demand – Supply gap

There is high demand for quality retail and hospitality development due to huge residential catchment and

proximity to Ambattur Industrial Estate.

Absence of organized retail and hospitality segment.

Potential Development

Retail and Hotel Development is best suited for the subject site considering the current demand supply in the

micro market study region.

Potential Built up area development will be approximately 608,000 sq. ft. considering the FSI achievable of

2.5

Residential development not permitted by RLDA.

Infrastructure

Padi elevated rotary (Grade separator) has been constructed by National Highway Authority of India to ease

the traffic congestion.

Future growth

Paucity of mid / high end quality residential, retail and hospitality development in the region

Other complimentary developments in the area

The location has good demand for organized retail establishments and Hotel development.

Close proximity to IT developments and Industrial area is an added advantage.


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13. Site Visuals

Access Road from Padi Junction leading to site Access Road from site leading to Ambattur

Main Entrance of Lucas TVS on East View of Lawn on North of the site

Access Road inside the subject site View of Site

The Site

The Site

The Site


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14. Land Title Annexure 1


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15. Revenue Map Annexure-2

Documents

Project Information Memorandum (PIM)rlda.indianrailways.gov.in/works/uploads/File/... · · 2015-10-27In case of commercial ... Primary Catchment (upto 5 km radius from study region)