Shyamaraju and Company is an infrastructure construction major that helped in the restoration of Bangalore’s historic Ulsoor lake and building the Mekhri Circle underpass. It launched DivyaSree following the growing demand for commercial and residential property in the city in the wake of the IT-ITES and biotech boom of the 90s. DivyaSree capitalises on the parent company’s substantial construction muscle and teams this with cutting-edge solutions for its clients. The impressive pedigree and the professional management of DivyaSree Constructions drew the attention of TPG-Axon Capital, a global investment firm managing over Rs 27530 crore (US $7 billion) in capital.

In 2007, the firm picked up a minority stake in DivyaSree, boosting the latter’s brand equity in India and abroad. “It was a significant milestone for us because a global investor was expressing confidence not only in our core capacities but also in our ability to scale up the business in the next few years,” says Executive Director Bhaskar N. Raju.

This year, DivyaSree is on a rapid growth and diversification mode. From the 5 million sq ft it has built so far, the company is set to make the quantum leap to creating nearly 50 million sq ft of commercial and residential properties in the next few years. “We are leveraging the goodwill and trust of our global customers to scale up our operations in South India. Our diversifications into residential projects and more recently into the creation of SEZs specifically for the hi-tech industry will keep us on even keel in the push and shove, ups and downs of the property market,” says Raju.

DivyaSree Technopark - Accenture Block A 1

DivyaSree is developing two IT-ITES specific SEZs, one in Bangalore’s Whitefield suburb and the other off the Hyderabad-Old Mumbai Road in Hyderabad. MNCs like Accenture have booked space in Bangalore and IBM in Hyderabad. Two more SEZs, one near Bangalore’s HAL Airport and the other adjacent to the new international airport, are at a conceptual stage and will take on the contours of development by the year end. DivyaSree Omega and DivyaSree Solitaire, two massive commercial projects in Madhapur at Hyderabad, have attracted significant media comment because they are the leitmotifs to the city’s growing clout as a hub for hi-tech companies.

The company has completed work on the Google campus and is also developing facilities for Convergys and the Software Technology Park in the same locality. “India is poised to become one of the world’s largest economies fuelled by industry and the entrepreneurial flare of a new generation of Indians. SEZs are the template of a futuristic country, which is why the government is encouraging their development in every state. DivyaSree’s vast experience in designing and creating hi-tech hubs for global corporations comes in handy in the design and creation of state-of-the-art SEZs,” says Raju

DivyaSree has been credited with pioneering the concept of providing incubation spaces to its clients, while development is underway. Logica CMG was provided incubation space while its campus was under construction in Bangalore. A similar deal was inked with Google in Hyderabad.

The UBS campus developed by DivyaSree

DivyaSree is working on a hospitality project on the Hyderabad-Old Mumbai Road comprising of a four star hotel and serviced apartments. The project will be operational by 2011 and is part of a chain planned by the company in Hyderabad, Chennai and Bangalore. DivyaSree will be tying up with a global hospitality partner to manage this business.

“There is a growing demand for quality hotels and serviced apartments not only in the major metros but also in second and third tier cities. There is a huge chasm between demand and supply and we have homed in on this business opportunity. Our foray into the hospitality space has been well thought out and we will scale up operations in the coming years,” says Raju.

DivyaSree has scaled a steep growth curve in recent years with its commercial projects and it is not surprising that it has also ventured into the residential space, considering the ever-growing middle class and the increasing number of high-net-worth individuals. The company designs living spaces for the contemporary Indian family, which is the keystone of its creations – plush modern contours and facilities, twinned with a cosy ambience.

DivyaSree’s foray into residential projects received a boost last year when its first outing DivyaSree Élan, a gated community of approximately 400 apartments, located in a cluster of 12-storied towers on Bangalore’s Sarjapur Road, were sold out within weeks of the ground breaking ceremony. Projects that will begin to take shape in Bangalore this year include a high-end multi-storied residential project of exclusive apartments in North Bangalore and a middle segment integrated apartment complex on Sarjapur Road. In Hyderabad, work will begin on a large apartment project and a gated community on a large tract of land in Chennai. The gated enclave will feature a hospital, a school and a mall, marrying convenience with exclusive lifestyle concepts.

DivyaSree has many firsts to its credit including structuring the first commercial real estate transaction to be valued on a rental yield capitalisation basis for the sale of commercial space to HDFC. It also provides captive power generation and centralised air-conditioning in an IT Park as part and parcel of the project matrix.