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Eco-habitatdeveloper Organo is looking to invest Rs 900 crore in acquiring 1,800acres of land across Hyderabad and Bengaluru to develop townships,sources told ET.

The Hyderabad-based company is bettingon demand growth in self sustainable cities and people wanting tolive away from cities after the Covid-19 pandemic.
Organo’sfounder Nagesh Battula said the company is looking to developtownships but did not confirm the investment figure. “We arecurrently looking at projects across product types with an order bookof Rs 3,000 crore and turnover of Rs 900 crore, targeting 3% of thetotal TAM for alternate real estate in India.” Battula said.

“InRurban (a mix of rural and urban) communities, there is very littlespeculation on land price and the majority of the cost goes intoconstructing building infrastructure and installing technologies forsustaining the community. The land price amounts to only 11% of theoverall cost,” he said.

BuildingRurban communities is unlike typical real estate investments wherethe project value is majorly derived from the speculative nature ofland price and developments that take place around the project.
AMeraqui report 'Emerging Residential Niche Products’ says that thetarget addressable market (TAM) for alternate real estate is expectedto reach $4.3 billion by 2022.

InHyderabad, the company’s projects with a total value of Rs 450crore are coming up on a 70-acre land parcel and are expected to becompleted by 2023.
While, in Bengaluru, the company hasidentified land parcels of 63 acres (254 villas) and 50 acres (150villas) to the north of Bengaluru with a total project value of Rs372 crore and Rs 270 crore, respectively.
“With our citiesbeing choked due to high population density, we are consumingpolluted water, breathing polluted air and eating polluted food.Counter - urbanisation is one possible solution to reduce stress onour cities and improve our health and well-being,” said Battula.