The latest to join the Indian real estate bandwagon is the giant Life Insurance Corporation of India, as it recently outbid other realty players in purchasing large tracts of land across the country.

The corporation will develop commercial properties on the acquired land, and lease the offices to add to its revenues. Holding assets worth Rs. 6 lakh crore, LIC has spent Rs.400 crore this year on acquiring the properties in Delhi, Jaipur and Kolkata, as compared to Rs.100 crore a year till 2006-07.

LIC’s land acquiring spree is likely to continue for the rest of the year, as it is understood to be looking out for expressions of interest from State–owned bodies who are putting up their properties on auction.

LIC created waves with its purchase of a 5 acre plot of land on the Eastern Metropolitan By-pass in Kolkata for Rs.276.2 crore recently.

An “investment building” is expected to come up here, to ensure sustained returns for the corporation through lease rentals. The corporation has a string of old properties on lease which are not viable anymore, earning insignificant rentals, for lack of plug and play infrastructure.

LIC would be investing in new properties that would be equipped with the latest technology, hiring third-party builders. The corporation’s real estate assets include 1,571 properties in India, with 374 of these reserved for investment.

In addition, it owns freehold properties in Indian metros which are likely to be used for housing its offices and employees. The rest of the property would be used for generating income, reveals LIC Managing Director A.K.Dasgupta.

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