Chennai-based real estate developer Rakindo Developers’ proposal to set up a wholly owned subsidiary with $250-million FDI from Dubai-based Rakeen Development is expected to get Cabinet clearance on Thursday.
Rakindo has plans of building a $1.5-billion (Rs 6,000- crore) integrated township at Coimbatore which will be ready for launch after the CCEA clears the FDI proposal. The plan envisages developing over 1,000 acres of property with an 18-hole golf course as the centerpiece. Rakindo is proposed to be a holding company that will promote investments in several SPVs to develop and operate townships. It is a joint venture company formed by Rakeen, a joint stock global business company promoted by the Ral Al Khaimah group, UAE and the Chennai based mineral conglomerate Trimex group owned by Koneru Prasad.
The newly formed real estate company has already obtained FIPB approval to invest and hold downstream investments in Companies formed for the Coimbatore project.
FIPB had considered the Rakindo proposal in March, which was subsequently approved by different ministries including the department of industrial policy and promotion, department of economic affairs and the ministry of urban development. Built around the concept of “walk to work culture”, the Coimbator project plans to have an IT SEZ, specialty hospital besides commercial and residential complexes. The CCEA will also consider another proposal by Essar Power Ltd Mumbai for FIPB approval to operate as a holding company.
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That’s very good for the coimbatore area which have to be good for the particular state because foreigners are also showing their interest to invest over there.
UAE, today announced a 50:50 joint venture with Chennai-based Trimex group to form a foreign direct investment (FDI)-compliant real estate joint venture for the Indian market.
The JV, Rakindo Developers, will have a committed outlay of $5 billion over the next five years for its project in India. The company is planning to develop, on a conservative basis, 50 million square feet of residential, commercial and office space across the country over seven years.
Rakindo plans to start work on a $1.5 billion, 1,000-acre integrated township and information technology (IT) special economic zone (SEZ) in Coimbatore in the first quarter of 2008. It has already received in- principle clearance for the SEZ, which is being developed in partnership with the Tamil Nadu government.