Bangladesh to get first ‘green’ residential project with Tk 1,080cr investment

Ananta Group, one of the top garment exporters, is going to build Bangladesh's first environment-friendly residential complex in the capital city with an estimated investment of Tk 1,080 crore.

The project -- Ananta Terraces -- will be the first LEED (Leadership in Energy and Environmental Design) Platinum-certified gated community under the residential category in Bangladesh. The recognition comes from the United States Green Building Council.

Under the project, nine 21-storey towers will be constructed, said Sharif Zahir, managing director of Ananta Group.

LEED-certified homes are designed to provide clean indoor air and ample natural light and use safe building materials to ensure comfort and good health.

This type of residential buildings help reduce energy and water consumption, thereby lowering utility bills, among other financial benefits.

"Using the strategies outlined in LEED, homeowners will have a net-positive impact on their communities," the entrepreneur said.

In Bangladesh, several commercial buildings have also received LEED certification.

Zahir said the idea came to his mind during his university life.

"I have seen gated communities in the developed countries. Since the purchasing power of the people has increased and the economy has developed, there is a demand for this type of flats."

The project is expected to be implemented within the next three years.

Zahir said the project cost may go up to Tk 1,400 crore due to the upward trend of the price of construction materials.

Nine local banks have arranged a syndicated term facility of Tk 500 crore for Ananta Real Estate Ltd to implement Ananta Terraces.

Dhaka Bank PLC is acting as the lead arranger and agent of the transaction and will provide Tk 100 crore for the project.

Tk 400 crore will be provided by the remaining eight banks, namely Al-Arafah Islami Bank, Bengal Commercial Bank, Mutual Trust Bank, NRB Bank, Prime Bank, Pubali Bank, Shahjalal Islami Bank, and Social Islami Bank.

This means the financiers are coming up with 46 percent of the cost while the rest will come in the form of equity.

"We are financing the project for two major reasons: the location and the reputation of the builder," Md Monirul Alam, a senior vice-president and head of syndications and structured finance of Dhaka Bank.

"The project will be commercially viable."

Spanning over 43 bighas of land on Madani Avenue, the project has engaged global consultants.

"This will be the largest condominium project in Dhaka city," Alam said.

The site is located within two kilometres of Gulshan-2 and close to the Baridhara diplomatic zone.

The area is rapidly developing, with many establishments already there, including United International University, Sir John Wilson School, Chef's Table Courtside, United City, and Jolshiri Abashon.

Many more projects are either being implemented or in the pipeline.

"From this point of view, the project will be lucrative for customers," he said.

Despite being located near Baridhara, the price of flats will be significantly lower than in the posh areas, he said.

According to Alam, 64 percent of the project will have green space.

It will feature one shopping mall, retail stores, upscale eateries, supermarkets, and multiplex movie theatres.

Referring to an assessment, Alam said the flats would be booked before the project is completed. Already 16 apartments have been sold.

"So, the loan is a safe and lucrative one for the financiers."

The tenure of the loan is a maximum of seven years, the official said.

Zahir said it needs a large parcel of land to construct a gigantic project. However, such a large area of land is not available in Gulshan and Baridhara.

"So, we have selected Madani Avenue. We have designed the project to provide a world-class residential facility to dwellers."

The price of flats will be at least Tk 10,000 per square foot lower than those in Baridhara and Gulshan, he noted.

In Bangladesh, the LEED certification is mostly linked with the garment industry. The country now has 207 green apparel factories.