SmartCity Kochi seeks to raise Rs40 billion

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SmartCity Kochi seeks to raise Rs40 billion
Sands Infinit, the tallest twin IT towers in South India, will come up in SmartCity Kochi. The project can create workspace for 25,000 employees.

Dubai - The full build out investment potential of SmartCity Kochi is estimated to be Rs90 billion.

by

Issac John

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Published: Wed 29 May 2019, 7:41 PM

SmartCity Kochi, a joint venture of Dubai Holding and the Kerala government, will raise Rs40 billion from potential investors for upcoming developments, the company said on Tuesday.
Manoj Nair, CEO, SmartCity Kochi, said the money would be used for Phase-III, IV and V development by activating infrastructure-ready residential plots and by completing the balance infrastructure development in its township side.
"Phase-III will have residential, sports and recreation facilities and mixed-use developments on 30 acres of land. Phase IV and V planning is underway where we would invest an estimated Rs2billion to complete the remaining infrastructure to activate 45 acres of additional plots that could be offered to investors for residential and social infrastructure projects," said Nair.
In terms of development of IT business infrastructure, further investment of Rs22 billion would be required. The full build out investment potential of SmartCity Kochi is estimated to be Rs90 billion.
As per the original framework agreement with the Kerala Government, the base investment in SmartCity Kochi was estimated to be Rs17 billion. Overall, however, developments in SmartCity Kochi have so far resulted in investments of over Rs26 billion.
GEMS Modern Academy, with an investment of Rs1.02 billion, has commenced its operations with sports and other educational amenities expected to be completed by May of this year.
"With these three phases opening up, and subject to timely clearances and approval from the Government of Kerala, we would create further investment opportunities of Rs40 billion to promote developments in the township side of SmartCity Kochi," said Nair.
The SmartCity has invested in the development of 7kms of four-lane roads with utility and services trenches, 33 KV sub-stations with power infrastructure, water storage and distribution infrastructure, and landscaping to facilitate co-developments by investors. Work on water treatment plant is progressing as per schedule, he said.
Major businesses like Lulu Group International, Prestige Group, Maratt Group, Holiday Group and Schulte Group are the co-developers which have signed up to create IT business infrastructure projects. The LuLu group-promoted IT tower project is expected to be completed by December 2020.
Dubai Holding, the investment vehicle of Dubai Government holds an 84 per cent equity stake in SmartCity Infrastructure Pvt, which is a mixed-use township project on 246 acre-land in Ernakulam, central Kerala.
The remaining 16 per cent stake in the joint venture is held by the Government of Kerala.
The project is being developed on a 'walk-to-work' concept, with a township with all social infrastructure and other amenities, including multi-sports complex and a multi-transport hub.
- issacjohn@khaleejtimes.com


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