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Ferns Estates & Developers to enter hospitality biz with Rs 700 cr investment

Bengaluru-based realty firm & Developers has forayed into hospitality business and will invest Rs 700 crore over the next three years to construct five resorts in and Tamil Nadu, its top said.

The company has already delivered 23 projects comparting 15 million sq ft area. It is developing 3.3 million sq ft area across four projects, one of which is in partnership with group.

The company would build five resorts, having 500 keys, at locations easily accessible from Bengaluru, he added.

The construction of first resort, spread over 100 acre and 100 rooms, in Sakleshpur has started and the facility would open in September 2019.

The second 50-acre would be build in Chikkaballapur having 60 keys.

“The three resorts at Coorg, Bandipur and Yercaud are at planning stage. All the five resorts will be company-owned and company-operated,” Sreedhar said.

On investment, he said the total construction cost would be Rs 700 crore for these five projects. This excludes cost of the land that was bought long ago.

The construction cost would be met through internal accruals and membership fee.

“In the first phase, we will make 5,000 members,” said Sreedhar. The company would restrict sale of club memberships to 50 per cent of the available inventory to ensure the probability of getting a confirmed accommodation.

He said the company’s objective is to develop properties at short distances from and other key cities in 

It has also launched the Club holiday membership. This is a highly differentiated and flexible point-based membership programme, compared to conventional holidays available in the market.

Errol Fernandes, CMD of & Developers as well as by Ferns, said:”Our expertise in developing premium gated communities over the years has enabled us to seamlessly marry with hospitality.