Ascendas to develop two IT parks in India

Ascendas to develop two IT parks in India

The parks in Nagpur and Pune will cost US$375m in total

By UMA SHANKARI

ASCENDAS, one of Asia's largest suppliers of business space, yesterday said it will develop two IT business parks in India that will cost some US$375 million in all.

Tie-up: The Nagpur project will be developed jointly with the Maharashtra Airport Development Company

Ascendas will develop the IT parks - one in Nagpur and the other in Pune - over the next 5-7 years through joint ventures (JVs) with two government agencies.

The IT park in Nagpur, which is estimated to cost about US$235 million, will be developed together with with the Maharashtra Airport Development Company (MADC). Ascendas will take a 89 per cent stake in the project and MADC the remainder.

The IT park in Pune, on the other hand, is pegged at about US$140 million. Ascendas will take a 76 per cent stake in the park, while its JV partner Maharashtra Industrial Development Corporation (MIDC) will take the rest.

The two parks will bring Ascendas' India asset size to over US$850 million. The company already had assets of about US$500 million in the country before the latest two deals, said a spokeswoman. And the amount could grow as Ascendas eyes more cities in India for expansion.

Ascendas chief executive Chong Siak Ching said that the company will continue to explore more destinations, including Chandigarh, Delhi, Jaipur and Kolkata.

The two projects will be developed in phases depending on market needs, Ascendas said. The parks are expected to create a total of 7 million sq ft of top-end IT space with employment opportunities for over 70,000 people when fully completed.

Both parks are located within government-promoted and approved special economic zone (SEZ) areas, Ascendas said.

In Pune, the 2.5 million sq ft park will be developed in five phases. Construction of the first phase - comprising 500,000 sq ft - will start in the second quarter of 2007 and is expected to be completed by mid-2008. This phase is expected to employ about 5,000 IT professionals.

In Nagpur, the 4.5 million sq ft IT park will be built in six phases. Construction of the first phase of 500,000 sq ft is also expected to start in the second quarter of 2007, and be completed in 18 months. Phase 1 can accommodate some 5,000 professionals.

'Ascendas will have an even larger footprint across India to offer customers more options for business operations and expansion,' said Ms Chong.