Tamilnadu Industrial Development Corporation Ltd (Tidco), which has promoted Tidel Park as a joint venture with Electronic Corporation of Tamilnadu Ltd (Elcot), is also trying to exercise the green shoe option to raise an additional Rs 15 crore after having completed a bond issue of Rs 70 crore to part fund the debt component of Rs 226 crore.It has approached the Centre for treating the project with infrastructure status and has sought income tax exemption.

According to Cushman & Wakefield sources, this is the first instance, perhaps in India, of joint exclusive marketing. A top Tidco source confirming the offer of exclusive marketing rights to these three companies said a formal agreement will be signed within the next two or three weeks.

Though all of them are planning to sellmaximum space possible, Colliers Jardine hopes to sell about 40 per cent of the total space. All the three selected consultants will be paid one or two per cent as commission for the space they market or one month's rental in case software companies take the space on lease.

As many multinational software companies prefer leasing to locking money in unproductive assets, the lease-rent ratio of Tidel Park is expected to be around 70:30. However, local companies are expected to invest in the Tidel Park, as the prices are quite attractive now and expected to rise further only from next year.

Hyundai, which is the engineering, procurement and construction contractor, has already begun construction of Tidel Park behind Elnet City here. Four blocks-A,B,C and D-are expected to be completed by April 2000.

According to sources in the real estate industry, Tidel Park will be very difficult to market due to fear of high attrition rate prevalent in the software industry. As one consultant here put it: "People canshift jobs without shifting even their parking slots". Also, some feel that software companies may not appreciate all their competitors being under the same roof, as they are very sensitive to security and protection of their intellectual property.

Another section of the industry feels that as a number of software companies have shifted to Nungambakkam from Mount Road, they may not want to relocate once again.

Also, software companies have already taken four lakh sq ft of office space in the city, there may not be enough demand for the space available in Tidel Park. Of the 100 to 120 IT companies expected to set up shop here, two-three big users are estimated to lease as much as 1.5 to 2 lakh sq ft space in the 13-storeyed facility.

Cushman & Wakefield, however, are upbeat about the unique design of the Tidel Park, which has all the advantages of a software technology park and at the same time provides the occupants with the privacy required. Moreover, Chennai has a large pool of quality softwareprofessionals, they added.

Colliers Jardine also feels that Tidel Park has distinct advantages such as infrastructure of international standards, premium specifications for the building and a hassle-free single-window entry for setting up shop.

A Tidco source disclosed that of the total 1.2 million sq ft of space in Tidel Park, 9 lakh sq ft are for sale.

Of this so far companies have shown expression of interest to occupy around 3 lakh sq ft The marketing agencies will therefore be required to push for sales as much as 6 lakh sq ft.

The balance will be used for car parking and common areas like an auditorium, food court, health club, and conference hall. VSNL, STPI and DoT are to locate their offices here. Also space will be made available for banks and retail outlets.

Total equity of the project is Rs 94 crore and debt Rs 226 crore. Tidco, which took initially Rs 14 crore equity, has also got an additional Rs 40 crore as preference shares.

Elcot has put Rs 2 crore, the balance is being put up byEPC contractor Hyundai (Rs 8 crore), O&M contractor (tender for which is to be floated in two or three months), and banks and financial institutions.