New Delhi, April 3: Real estate firm Mantri Realty on Thursday said it plans to invest Rs 500 crore at Gwalior in Madhya Pradesh to set up a residential township and an IT SEZ.

Mantri Realty's Chairman Sunil Mantri said, "We plan an outlay of around Rs 500 crore for the development of the new Gwalior city. This is just a start and we are open to more investment in Madhya Pradesh."

The township, christened Mantri City, would comprise of 10,000 houses on 16 million sq ft, while the IT SEZ would cover 5-million sq ft.

Mantri has already acquired 375-acres from SADA, a special planning authority of the Madhya Pradesh Government, it said in a statement issued in Mumbai.

The requisite permits are under process and the project is expected to be launched by September. Mantri is also developing a mall, M-Square, spread over 5-acres of land (2-lakh sq ft area), which is expected to be completed by August next year.

Two prime residential projects are also in the offing, the company said. The first, known as Mantri Oriel, would have an area for sale of 1-lakh sq ft and would be sold at around Rs 3,000 per sq ft, one of the most expensive premium projects in Gwalior.

The other project is being developed over 8 lakh sq ft and would accommodate 10-storey towers of which, 1 lakh sq ft would be reserved for retail outlets, the company said.

Mantri Realty, a part of the Mantri group, has so far developed 15 million sq ft in different cities of the country. The company and its associates have a land bank of over 2,000 acres across the country at an estimated valuation of 2.5-billion dollars.