In yet another major fillip to Gujarat International Finance Tec-City (GIFT), the Gujarat government has alloted five lakh square feet of space to the Anil Ambani-led Reliance Capital.
The space, alloted in the IFSC SEZ area of GIFT, fast on its way to becoming India’s first greenfield smart city, is the largest taken by any private sector company till date. The company will set up its business including global alternate investment funds, commodity exchange and other international businesses in the GIFT city subject to requisite approvals from the regulators.The total space allocated for commercial purpose in the GIFT city is worth Rs 6,000 crore.
The allotment was announced by Ramakant Jha, MD and group CEO, GIFT Company and the letter of allotment was handed over to Sam Ghosh, executive director Reliance Capital on Wednesday. “We are happy that Reliance Capital has showed keen interest in setting up operations under GIFT. The board of GIFT approved their request. We look forward to more such corporates building their presence here. This allotment is expected to bring in investment of around R200 crore and generate employment for around 2,500 people in the next 3 years. We have got 60 applications from different institutions to set up their business here,” said Jha addressing the media at the venue.
“We thank the Gujarat government and the board of GIFT for alloting this space under IFSC, and look forward to setting up our various international businesses in this facility. We are starting the process of requisite approvals from regulators, and expect to launch the proposed businesses here shortly,” said Ghosh. Reliance Capital plans to set up a host of emerging business – including Alternate Investment Funds, Commodity Exchange Business and other International Business – in the GIFT facility, subject to requisite approvals from the regulators.
Reliance Capital has developed a strong alternate investment business, and has already raised a corpus of Rs 2,000 crore under its alternate investment platforms and funds in the last two years.”The AIF fund has been rated as Credit Rating Information Services of India (CRISIL) fund management capability level-1 indicating it possess highest standards in fund management capability and investment processes. The rating reflects the significant experience of our real estate investment team, strength of investment management processes and presence of adequate client servicing practices and disclosure. We plan to set up the largest international commodity exchange at gift, apart from expanding the international footprint of various existing businesses, ” added Ghosh.The company also plans to use a part of its alloted space under gift for offering housing for its employees.
The Bombay Stock Exchange (BSE) tower has been allocated space worth Rs 400 crore. The GIFT city data centre by Tata Communication is on the verge of completion and the World Trade Centre will begin construction shortly. It is estimated that GIFT, once operational would provide 5,00,000 direct and an equal number of indirect jobs which would require 62 million square feet of real estate office and residential space. Like all leading financial centres, GIFT will target a 6-8% share of the financial services potential in India.
It may be mentioned that in April last, the National Commodity and Derivatives Exchange (NCDEX) had announced a tie up with GIFT for setting up an International Commodity and Derivatives Exchange. An MoU was signed between the two parties for developing the exchange to provide electronic platform for facilitating trading, clearing and settlement of securities, commodities, interest rates, currencies, other classes of assets and derivatives by international investors, subject to necessary approvals and operating guidelines for IFSC.
Rel cap in gift city fold
* Gujarat govt allots five lakh square feet of space (worth Rs 6,000 cr) to Reliance Capital in the IFSC SEZ area of GIFT, the largest taken by any private sector company till date
* The allotment is likely to bring in investment of Rs 200 crore & generate employment for around 2,500 people in next 3 years
* GIFT is estimated to provide 5,00,000 direct and an equal number of indirect jobs which would require 62 m square feet of real estate office and residential space