Raheja may co-develop factories, housing units at Gurgaon SEZ

Raheja may co-develop factories, housing units at Gurgaon SEZ
The Hindu Business Line, May 21, 2009, Page 3

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“We hope to tie up Rs 300-500 crore of debt in the coming two-three months for complexes and processing units.” – Navin M. Raheja, Managing Director

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Moumita Bakshi Chatterjee, New Delhi

Delhi-based Raheja Developers Ltd said it may soon create a Special Purpose Vehicle within its Gurgaon engineering SEZ project, and rope in an industrial house for co-development of the space for factories and affordable housing units.

“We may create an SPV within the overall SEZ project. That particular area including flatted (ready-to-move-in) factories and affordable housing units can then be co-developed. We are in an advanced stage of talks with an industrial house for a 50:50 joint venture for this portion, but we cannot reveal the name yet,” Mr Navin M. Raheja, Managing Director of Raheja Developers, said, adding that the rest of the SEZ project will continue under Raheja SEZ Ltd.

Last year, the company had outlined plans to fund the SEZ through a mix of internal accruals, debt, and by roping in a strategic partner or a PE (private equity) fund.

“Last year, we were close to signing up PE funds, but that has not materialised due to the market crash. These PE investors are still waiting for markets to revive and so we have not ruled it out completely. However, for now we have invested Rs 10-15 crore of our own for the ongoing work in the SEZ including roads and drainage system.

“We hope to tie up Rs 300-500 crore of debt in the coming two-three months for complexes and processing units. In case we get an offer where the PE fund is not looking for guaranteed IRRs, we may also go in for an equity option,” he said.

Mr Raheja said the company remained convinced about the demand pipeline for the SEZ project. “Ours is the only engineering SEZ in North India, in proximity to the Capital,” he said.

Announced plans

Last year, the company had announced that the engineering SEZ spread over 257.5 acres (103 hectares) in Gurgaon adjoining Manesar, would be launched in phases and that the first phase could be completed within three years. The total usable area would be about 21 million sq ft. Out of the total area of 103 hectares, about 50 per cent would be the processing zone and the rest would be residential, commercial, institutional and educational space, according to the master plan.