Bangalore: Ascendas, a chief business space provider of Asia, has decided to construct a township in Chennai, reports Business Standard. This project is expected to generate investments of about $700 million (3,517 crore).

The Tamil Nadu government signed a Memorandum of Understanding (MoU) with Ascendas for this deal. Ascendas is an association of 2 Japanese corporate finance firms - JGC Corporation and Mizuho Corporate Bank. The deal for an integrated township in Chennai was finalized by Yukio Edano, Japan’s Minister of Economy; Trade and Industry (METI), J. Jayalalithaa, Chief Minister of Tamil Nadu and Karen Tan, Singapore’s High Commissioner to India. This township is a joint venture between IREO and Ascendas India Development Trust (AIDT). The Japan Consortium is also partaking in this venture. Yoshihiro Shigehisa, Chairman of JGC Group, said that the project is due in Q-3 of 2013.

Chong Siak Ching, President and CEO of Ascendas told Business Standard that the land in Chennai will be available for the township in Q-2 of 2012. She quoted, “This will be one of the largest investments for us in the country and it will be 10th project by the company in India.” This township will be essentially for Japanese and foreign firms and can sustain about 40,000 businesses. This integrated township is 50km from the south of Chennai. This township will be spread across 1,500 acres and will be constructed in an eco-friendly manner. About 400 acres is set aside for the development of businesses and will generate employment for about 2,00,000 persons.

This township will comprise essential elements, like – residential, commercial, business and industrial. The principal industries to be set up include - home appliances, automobile and ancillary, logistics, foods, infrastructure and electronics. The Tamil Nadu government, in association with Industrial Guidance Bureau, is working on a team to provide steady water and power supply to this project.

In an interview with Raghavendra Kamath of Business Standard, Jonathan Yap, CEO of India Funds, said that Ascendas has decided to invest in Indian IT parks right now because of the depreciating value of rupee. Other factors that urged the company to invest in India include – lowering of taxes due to the Special Economic Zone (SEZ) schemes and competent labour force of the country. Yap, however, is hoping for steady policy making and a good year ahead in the real estate business of India.