To create $1 billion Infrastructure Fund
Rs. 11,000-crore investment planned in real estate sector
Key thrust areas include roads
MUMBAI: The Tata group on Wednesday planned a major push in the realty and infrastructure sectors through group company, Tata Realty & Infrastructure (TRIL), by developing projects worth Rs. 20,000 crore in the next three years. A 100 per cent subsidiary of Tata Sons, TRIL is focussed on developing long-term infrastructure projects and large FDI (foreign direct investment) compliant real estate projects.
On the realty front, TRIL is now developing a 25-acre IT/ITeS SEZ in Chennai. The project — Ramanujam IT City to come up opposite Taramani MTR station, costing about Rs. 3,800 crore — will house a 3-lakh sq. ft. international convention centre, 3-lakh sq. ft. of residential apartments and a 250-key 5-star hotel set up with Indian Hotels. The project will be completed by December 2011.
TRIL is also developing IT SEZs in Ahmedabad (1.4 million sq. ft.) and in Hinjewadi (Pune, 3 million sq. ft.) for group company TCS. It will also develop the third IT SEZ for TCS in Kolkata.
Addressing the media here, TRIL Managing Director and CEO Sanjay Ubale said the real estate projects included a 7-lakh sq. ft. retail complex in Amritsar, costing Rs. 550 crore on 5.5 acres where the group company Indian Hotels Company would add a world-class 5-star hotel. TRIL was also evaluating residential and mixed use development on 35 acres at Gurgaon targeting the salaried middle income group.
Over the next three years, an investment of Rs. 11,000 crore would be made by TRIL in the real estate sector, Rs. 5,000 crore in roads and Rs. 4,000 crore in other infrastructure (excluding Monorail and Metro projects). To fund the real estate projects, TRIL has raised an offshore fund — Tata Realty Initiatives Fund (TRIF-I) — aggregating $700 million. Besides $50 million was raised from Tata Sons. For the infrastructure foray, the company will create an Infrastructure Fund of $1 billion before the end of the year and could consider one more fund. “We will also see if a strategic investor will come through the special purpose vehicle (SPV) route,” said TRIL Executive Director Phillie Karkaria adding that “we will raise around Rs. 1,400 crore on our own other than what the funds will contribute.” TRIL has identified key thrust areas including roads and bridges, urban infrastructure, airports and logistic parks.