Tuesday, December 04, 2007

Rakindo Developers to invest in Coimbatore

A Rs 10-crore home ($2.5 million ) in a 400-acre Marina on the Bay of Bengal, just an hour’s drive from Chennai could be up for the taking in a few years. It will come up along with a miniport, and be developed as a luxury waterfront project.

Rakindo Developers, a 50-50 joint venture between Rakeen, promoted by the Government of Ras Al Khaimah, UAE, and the Chennai-based Trimex Group, is expecting to invest $5 billion worth in real estate projects in India totalling 50 million sq feet of development over the next 5- 8 years.

The Marina project that comes up on an estuary and a home-away-from-home in Kumarokom, in Kerala are the two luxury projects waiting for environmental clearances. The company is otherwise planning to focus on integrated townships as a model housing offering for different budgets, and plans to stay away from city projects.

It already has 4,000 acres, and according to the Managing Director, Mr Prasad R. Koneru, another 5,000 acres are in the offing. “We have already invested $100 million, and will be investing another $100 million in 2008,” said Dr Khater Massaad, CEO, RAK Investment Authority. The projects cover Coimbatore and Chennai in Tamil Nadu, Kumarakom and Kochi in Kerala. An 800-acre township and SEZ has also been planned about 10 km from Coimbatore.

According to Mr Koneru, the SEZ will focus on IT and the township will also serve Tirupur. The traditional ground breaking ceremony of the 650 acres of phase one is expected to take place in February 2008. The company is hoping to have a 50-50 debt–equity ratio, and could consider raising equity down in 4-5 years.

RAK Investment Authority is also investing in a $2 billion mining project in partnership with the Andhra Pradesh Government. The 1.5 million tonnes of alumina and 350,000 tonnes aluminium smelter project will also have a captive power plant.

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