SmartCity Kochi to raise Rs. 4,000 cr more to develop next 3 phases.

SmartCity Kochi, a joint venture company of the Kerala government and Dubai Holdings, has drawn up ambitious plans to raise another Rs. 4,000 crore from investors for development of Phases III, IV and V. It plans to activate infrastructure-ready residential plots and complete the balance infrastructure development on the township side.

“Phase III will witness residential, sports and recreation facilities and mixed-use developments in a land area covering 30 acres. Phase IV and V planning is under way where we would invest an estimated Rs. 200 crore to complete the remaining infrastructure to activate 45 acres of additional plots that could be offered to investors for residential and social infrastructure projects,” said Manoj Nair, CEO, SmartCity Kochi.

Investment opportunities

On the township side, Gems Modern Academy, with an investment of Rs. 102 crore, has commenced operations with sports and other educational amenities expected to be completed soon.

“With the opening of these three phases, and subject to clearances and approvals from the Kerala government, we would create further investment opportunities of Rs. 4,000 crore on the township side of SmartCity Kochi,” Nair said

Of this, a confirmed expression of interest from a residential project developer in South India is under process. the project involves developing 15.5 acres at an investment of approximately Rs. 1,200 crore, he said.

Construction work on the residential project is likely to begin in the last quarter of 2019, subject to clearances from the State government.

Work on other infrastructure will be taken up in the last quarter of 2020. According to Nair, the master plan of SmartCity Kochi has been updated and environmental study for the expansion is under way.

As per the framework agreement with the Kerala government, the base investment in SmartCity Kochi was estimated at Rs. 1,700 crore. Overall developments in SmartCity Kochi have so far resulted in an investment over Rs. 2,600 crore.

In terms of development of IT business infrastructure, further investments of Rs. 2,200 crore can be attracted. The full investment potential of SmartCity Kochi is estimated at Rs. 9,000 crore, Nair said.

Major businesses such as Lulu Group International, Prestige Group, Maratt Group, Holiday Group and Schulte Group are the co-developers and have signed up to create IT business infrastructure projects.

HBL