India Investment Property » SEZ

First Engineering SEZ In Haryana By Raheja Developers

admin — Thu, 21 Aug 2008 11:08:22 +0000

Real estate developers Ansal API and Raheja Developers are attempting to tide over the gloom in the real estate sector by pursuing their special economic zone (SEZ) plans. While Ansal has announced plans for six infotech SEZs across three states, Raheja is setting up north India’s first engineering SEZ in Haryana.
While Ansal will pump in Rs 3,600 crore for developing four IT SEZs and two IT parks spread over 270 acres, Raheja plans to invest Rs 4,500 crore in an engineering SEZ to be built over 255 acres. Both the projects are to be completed in five years.
“In addition to an equity component of Rs 1,000 crore, the company will raise around Rs 1,500 crore through debt. The remaining Rs 1,100 crore will be funded through internal accruals,” said Rakesh Jain, executive director (marketing), Ansal. The four SEZs would be located in Greater Noida, Gurgaon, Lucknow and Khopoli in Maharashtra. The IT parks would come up in Lucknow and Noida spread over an area of 18 and 10 acres respectively.
Meanwhile, Rahejas said its engineering SEZ will accomodate complexes for light and medium engineering goods exporters and have approximately seven million sq ft of residential area. “Investors and well reputed business houses from across the globe have expressed keen interest in associating themselves as co-developers and investors in the SEZ,” Navin M Raheja, chairman, Raheja Developers said.
NW18 adds: Ansal API is in talks with both Indian and overseas private equity investors to raise up to Rs 2,500 crore for funding its SEZs and two IT parks.
The company may also dilute its stake in these IT SEZs and parks.

‘Out of the total Rs 3,600-crore investment in the IT SEZs and parks, the company will put in around Rs 1,000 crore. The remaining will be from other investors,” said Jain.
A slowdown in demand, coupled with tight liquidity conditions, has forced realty companies to look for alternative sources of funding with private equity emerging as the most preferred choice.
In July, Ansal API had said it will invest over Rs 900 crore in an engineering-based SEZ in Murthal, Haryana.
Currently, the company has a land bank of around 7,000 acres across residential, commercial, integrated townships, retail, SEZs and IT park projects.

Tata Realty Builds IT Park

Tue, 29 Apr 2008 06:58:49 +0000

Tata Realty and Infrastructure Ltd declared about agreement with the southern state of Tamil Nadu to build a special economic zone for information technology.

The project, which will see an investment of more than 30 billion rupees, will include a convention centre and a luxury hotel and serviced apartments that will be built in a joint venture with Indian Hotels Co Ltd, another Tata group company.

The first phase of the 4 million square feet zone will be completed by the end of 2009, with the entire project ready by 2011. Special economic zones are large tax-free industrial enclaves created to boost industrial and export growth.

Royal Group, GTC in Race to Buy 26% in Raheja Group’s Engineering SEZ

Tue, 22 Apr 2008 13:28:45 +0000

Royal Group of UAE and Netherlands-based GTC Real Estate are in the race to acquire 26% stake in the Delhi-based Raheja group’s engineering SEZ in Gurgaon for Rs 500 crore. It has been learnt that the Raheja group may ink the deal with either of the two groups in the next few weeks.

Raheja Developers MD Mr. Navin Raheja declined to comment on the development, but said his company was in talks with some investors to sell equity stake in its SEZ. The 257-acre SEZ project is being valued at Rs 4,500 crore with the land component accounting for almost half of it. The foreign investor will initially take 26% stake in the SEZ for around Rs 500 crore and May later bring in more funds towards construction cost.

The Royal Group, led by the royal family of Abu Dhabi, is a conglomerate of 30 companies engaged in several sectors such as media, real estate, trading, services, construction and technology. The other likely investor GTC Real Estate is a Netherlands based firm, listed on Tel-Aviv Stock Exchange. Dutch-Israeli investment fund The Kardan Group, which holds 64.3% stake in GTC Real Estate, is mulling the latter’s merger with itself.

Raheja Developers are a privately held firm with a net worth of Rs 1,225 crore. Their engineering SEZ has recently been notified by the government. The total usable area in the SEZ will be 21 million square feet, of which 9.68 million square feet will be used for industrial purpose. Eight million square feet of space will be utilized for residential purpose, while the rest will be used for commercial, institutional and educational purposes. The SEZ will be completed in phases with the first phase being completed within 3 years, according to Raheja Developers. The company says that it has been approached by several international and national Engineering Companies for taking space in its SEZ.