Patel Engineering Ltd, a civil infrastructure construction company, plans to enter into the realty business and build commercial and residential property, IT parks and SEZs over the next three-years.

The latest move was a part of company's strategy to unlock the value of its 1,100 acre huge land-bank. The real estate business will be run by company's wholly-owned subsidiary, Patel Realty.

Patel Engineering's present core operations are in the areas of building hydro-power plants, irrigation dams, urban infrastructure and transportation.

The first project would come at 80,000 sq ft commercial property in Mumbai's Jogeshwari area. Further, the company will develop a 1 million sq ft commercial project in Jogeshwari which should be ready by Q4 FY'10.

The company will fund its realty foray through internal accruals.

Patel Engineering has recently announced diversification into power through its wholly-owned subsidiary, Patel Energy, and plans to set up a hydro and thermal power plant in Arunachal Pradesh and Tamil Nadu, respectively.

The scrip of the company closed on Friday at Rs 483 on BSE, down 2% compared to its previous close of Rs 494.