AIG GLOBAL ARM TO INVEST RS 300CR IN SEZ

D Govardan, Chennai
Financial Chronicle

An AIG Global Real Estate affiliate on Monday announced that it is investing close to Rs 300 crore and picking up an undisclosed equity stake in Velankani Tech Park, an SEZ coming up near Chennai.

The Bangalore-based Velankani Group is developing an ‘Electronic Hardware Manufacturing and ITES’ SEZ at Sriperumbudur, near Chennai in Tamil Nadu.

With an investment of Rs 1,300 crore in a 250acre campus, this SEZ with over eight million sq ft is equipped to house between 20 and 30 global component suppliers.

“It is a structured private equity transaction with a total investment of Rs 300 crore,” an official spokeswoman on the behalf of AIG Global Real Estate said. While companies, moving in to the SEZ, are expected to start operations from April, 2009, the entire project is expected to be completed by 2012 and the proposed investment will come in phases, linked to development of the SEZ.

According to a statement from the company, the proposed development of 8.5 million sq ft is aimed to provide plug-and-play space for electronics hardware and telecom component manufacturers, besides IT/ITES companies and it will meet ready-to-move-in-space requirements of vendors to telecom OEM and electronic manufacturing services (EMS) giants looking to set up operations in and around Sriperumbudur.

“AIG Global Real Estate brings tremendous experience in development of industrial parks worldwide and we are excited to partner with them. We will benefit from their global client relationships and hands on design and development expertise,” Kiron Shah, director and founding member, Velankani Group said.

“We are excited to invest in a project that caters to an unfulfilled demand in the region.

This investment is a statement of AIG Global Real Estate's commitment to India and our investors and we are looking forward to expanding its presence in India and building strong relationships with local partners and investing in attractive opportunities in the region,” said Rajesh Agarwal, managing director, AIG Global Real Estate said.

The Bangalore-based Velankani Group has developed over one million sq ft of IT space in that city. It is also developing a value for money business hotel with 5-star facilities at its campus in the Electronics City, Bangalore.