Ahmedabad-based real estate major Shaan group of companies will invest Rs 500 crore over the next three years. The company will set up a five-star hotel with an investment outlay of Rs 250 crore while Rs 50 crore will be spend to develop an entertainment zone

-- both these projects would come up on SG Highway. Meanwhile, the company’s third project, residential colonies and land development, will be developed at an investment of Rs 200 crore in Mumbai and Ahmedabad.

“Considering the present market scenario, we have realised that it is not the right time to market properties. We have decided to focus entirely on developing land and properties for the next two three years. Shaan Group will invest about Rs 500 crore in the days to come,” said Sejal Shah, MD, Shaan Group.

Shah added that the projects would be funded by raising money from a section of HNIs who are looking for the right avenues to park their funds amidst ongoing crisis. The group has formed a venture to accommodate investors as partners in the project.

“Today, raising funds from the financial institutions for real estate projects is a challenge. We are confident to raise funds in phases from HNIs. Effective finance management will play key role for our growth plans,” said Shah.

However, Shah declined to name the partner for the hotel saying that they are in the final stages of discussions with an international chain of hotels.

The company’s plan is to spread the investment over the next three years and get the projects up and running when the economy recovers. The Shaan Group’s plan to club five-star and an entertainment zone is likely to attract footfalls.

“Besides a five-star, the property will include multiplex, food court and gaming area. We are developing our land bank by constructing approach roads and planting trees to make assets more appealing to kick off bookings,” said Mit Shah, joint MD, Shaan Group. Mit Shah said the group has plans to develop its land bank at Murud and Mandva in Mumbai.

The company has also received the approval from the state government to develop an integrated township on 175 acres in Ahmedabad. In the past, group has also developed landmark Gallops Mall and multiplex at SG Highway.

Shaan Group is a privately held diversified major with core interests in real estate, hospitality, development and construction, oil and chemicals, financial services and investments with ownership of free hold land over 50 million sq ft in Gujarat and Maharashtra.