Real-estate developers park Rs 4500 cr in Gujarat's GIFT-City project

Written by Avinash Nair | Ahmedabad | Updated: Sep 30 2014, 21:35pm hrs
A host of real-estate developers, including the likes of Mumbai's Hiranandani, Bangalore's Brigade Group and Pune's BU Bhandari Landmarks will be pumping in Rs 4500 crore of investments in developing residential and commercial complexes within the Gujarat International Finance Tech-City (GIFT) project which is being developed as the country's first smart city near Gandhinagar in Gujarat.

"The real-estate developers will together be investing about Rs 4500 crore in building residential and commercial complexes within GIFT," said RK Jha, director of Gujarat International Finance Tec-City Company Ltd, which is a joint venture between state-run Gujarat Urban Development Company Ltd (GUDCL) and a private firm Infrastructure Leasing & Financial Services Ltd (IL&FS).

This is the biggest influx of real-estate developers to be attracted to the GIFT project so far. The GIFT authorities have already made allotments to Pune-based BU Bandari Landmarks for developing 1.8 lakh square feet of residential space which will initially include 350 apartments. The other residential developer who has been given land for development is Ahmedabad-based Sangath Group who will be initially be developing one lakh square feet of residential structures.

"We are currently in the final stages of approving the applications of Bangalore's Brigade Group who is planning to develop 12.8 lakh square feet of which only two lakh square feet will be residential. The other application is of Mumbai-based Hiranandani Developers Pvt Ltd who is looking to develop three lakh square feet of commercial space in the SEZ area of the GIFT city," Jha added.

Most of the residential schemes that will come up within GIFT will be high-end. "We will also be constructing 400 units of affordable housing for people who will be working in GIFT. We plan to built these units (of about 380 square feet each) and lease it out to the workers," the official said.

Meanwhile, over 60 percent of the space in the first 28-storied tower --- highest building in Gujarat --- that was inaugurated by Prime Minister Modi in January 2013 has been sold. "About 5 lakh square feet of space in this first tower (total of 8 lakh square feet) has already been occupied. We currently have 14 banks in this tower and we expect the tower to be sold out by December," Jha said.

The GIFT authorities will open bookings for the second tower (8 lakh square feet) in November this year. "This building we plan to sell to foreign banks and insurance companies," Jha said adding that the authorities were trying hard to get foreign banks like Bank of America, Citibank or Goldman Sachs on-board.