NY based Tishman to construct 8.8 cr township in Hyderabad

By siliconindia   |   Thursday, 08 February 2007, 18:30 IST
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New Delhi: ICICI Venture and Tishman Speyer seem to have dug their hands into the country's single largest real estate investment. The two, alongwith Nagarjuna Construction Co. plan to spend $2 billion (Rs8,824 crore) on a 400-acre township in Hyderabad; largely in response to the spurt in the IT sector and the corresponding potential demand in the city. This comes on account of TSI Ventures? winning the Tellapur project after it bid Rs4.215 crore per acre, slightly above the Andhra Pradesh government?s reserve price of Rs4 crore per acre. TSI, a joint venture between ICICI and Tishman was chosen from a list of 33 shortlisted 33 companies, reported Mint today. New York-based Tishman Speyer has acquired, built or developed more than 76 million sq.ft across the US, Europe and Latin America , and owns iconic buildings such as the Rockefeller Center and Chrysler Building in New York. The township in Hyderabad will be a mix of commercial and residential complexes and recreational space. While the project will be designed by Tishman Speyer, TSI Ventures will manage it. The state government will get about Rs50 crore in revenue each year for five years from the developers as part of the agreement. While Nagarjuna holds 26 percent of the project, the remainder is owned by the private equity funds. The transaction will be financed by a mix of equity and debt and may include overseas borrowings. India?s real estate market is bustling at an exemplary pace, with construction being the second largest economic activity after agriculture. The real estate market in India is expected to touch $50 billion by 2010, from about $12 billion now. Fuelling 30 percent per annum growth is the corresponding buzz in the information technology sector, which has created more jobs and the need for large office complexes and homes. on completion of the multi-year project, the business plan submitted to the Hyderabad Urban Development Authority envisages the property to sell for around Rs10,000 crore.