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Tue 28 May 2019 01:57 PM

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Dubai-backed SmartCity Kochi eyes $575m in new funds

Joint venture of Dubai Holding and the Government of Kerala says it will raise an additional $575m from potential investors

Dubai-backed SmartCity Kochi eyes $575m in new funds
SmartCity Kochi is a joint venture company of Dubai Holding and the Government of Kerala.

SmartCity Kochi, a joint venture company of Dubai Holding and the Government of Kerala, said on Tuesday it would raise an additional $575 million from potential investors for its phase III, IV and V development.

The company said it would activate infrastructure ready residential plots and complete the balance infrastructure development in its township side before approaching potential investors for the proposed fund raising.

“The Phase III will witness residential, sports and recreation facilities and mixed-use developments. Phase IV and V planning is underway where we would invest an estimated $30 million to complete the remaining infrastructure to activate 45 acres of additional plots that could be offered to the investors for residential and social infrastructure projects,” said Manoj Nair, CEO, SmartCity Kochi, said in a stement issued on Tuesday.

Gulf-based leading business groups like Lulu Group International and GEMS Modern Academy, besides other major Indian and overseas groups such as Prestige Group, Maratt Group, Holiday Group and Schulte Group are the co-developers which have already signed up to create IT business infrastructure projects in SmartCity Kochi, according to the comany statement.

“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 $575 million to promote developments in the township side of SmartCity Kochi,” Nair said.

The proposed development entails residential project in an area covering 15.5 acres of land on a freehold basis, with an investment of approximately $173 million,” he added.

Construction work on the residential project is likely to commence during the last quarter of 2019. Work on remaining infrastructure development will be taken up in the last quarter of 2020.

Nair said the master plan of SmartCity Kochi has been updated and environmental study for the expansion is underway.

As per the framework agreement with the Kerala Government, the base investment in SmartCity Kochi was estimated to be $244 million. The JV project has already exceeded this projection to reach a total investment to the tune of $373 million so far, the company said.

“In terms of development of IT business infrastructure, further investments to the tune of $316 million could be attracted. The full build out investment potential of SmartCity Kochi is estimated to be $1.3 billion,” Nair said.

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