Gurugram-based real estate firm RSP Developers plans to invest around Rs 500 crore into a 12-acre research and development (R&D) centre and a co-living facility in the city by 2023, managing director Satya Priya Yadav told Moneycontrol.
"The first phase of the 12-acre e-novation Centre project is ready and a 7-acre space comprising two blocks have been developed. The first block has been leased to BMW Group for its research and training centre," Yadav said, adding this is perhaps the first R&D Centre in the NCR.
The company is into built-to-suit commercial projects. Until recently the trend has been for R&D projects to be largely concentrated in South India, especially in Bengaluru, Hyderabad and Pune.
The total area taken up by the automobile major in Gurugram is over 5 lakh sq ft, he said.
"BMW Mini is using the facility for research and training of their staff. The block taken up by the company has been customised to meet their requirements. The second block meets the general requirements of all clients, including IT and R&D clients who may take up space in the future," he added.
"We have already invested Rs 300 crore and may spend another Rs 150 crore once the entire project is ready within the next three years," he said.
When asked if the company plans to replicate the model elsewhere, Yadav said the model is a little tough to develop and replicate. "Efficiencies have to look into. We may replicate it provided our existing clients wants to expand to another destination," he said.
These are preleased built-to-suit buildings that are customised on a long-term lease basis. "The period of lease for such facilities vary from nine to 18 years," he told Moneycontrol.
The company is also planning to develop serviced apartments within the campus. "We have dedicated a block spread across 1 lakh sq ft in a 1.5-acre area for residential, short stays or training purposes perhaps under the co-living model," he said.
"We are open to getting in a third party provided the third party takes care of our existing tenants’ requirements," he added.
The residential facility would comprise around 110 rooms. "These will be part of our second phase and would be ready within the next three years. They are expected to be completed by mid-2023," he said.
"We envisage that the total cost for the entire Gurugram project would run into Rs 500 crore by 2023," he added.
The company is also planning to develop a commercial project in Indore where it is targeting the joint venture (JV) model and have identified a few land parcels, Yadav stated.
The company also plans to develop a couple of built-to-suit projects in Gurugram. "Talks are on. We are in the process of acquiring land," he added.