By IANS
New Delhi : A company promoted jointly by the government of Ras Al Khaimah of the United Arab Emirates (UAE) and the Chennai-based Trimex Group Monday announced realty projects worth $5 billion in India over the next five years.
“We wish to develop projects over 50 million sq ft and will primarily target tier two cities in India, predominantly in the south,” Prasad Koneru, founder of Trimex, told reporters here. The new company is named Rakindo.
“The proposed projects include a marina around 70 km from Chennai on an estuary where we will offer waterfront homes,” Koneru said.
“The infrastructure cost will be high so these homes will cost around $2 million.”
Khatar Massad, advisor to the crown prince of the emirate, said the new joint venture will also look at integrated townships and will add to the investments by Ras Al Khaimah in India that now spans aluminium and ceramic industries.
“Rakindo will be starting work on a $1.5-billion integrated township over 1,000 acres in Coimbatore and we have in-principal clearance from the government for the special economic zone,” Massad said.
“Our intention is to provide feeder townships to reduce the burden on cities. We will also set new standards to live in them. Our first project near Coimbatore is expected to start around early February,” Koneru added.
He said the project has been designed keeping in mind global standards and will offer customised infrastructure, an 18-hole golf course, a luxury hotel, a health spa and a hospital over 1,000 acres in two phases.
Asked how the joint venture will raise funds required for the project, Massad and Koneru said they intended to have a debt-equity ratio of 1:1 and will pump in money as and when the projects progress.
“We may also plan an initial public offering over next three-four years. But for now, our plans is to build the projects and keep them going,” Koneru said.
Among the other projects of the emirate through its various investing arms in India include a 1.5-million tonne alumina and 350,000-tonne smelter in Andhra Pradesh for which land is being acquired by the state government.
“The Andhra Pradesh Mineral Development Corp will be sourcing the bauxite for the unit and the process is expected to start by January-February,” said Koneru, whose group is advising the Ras Al Khaimah agencies project.
This apart, the emirate’s investing agency also has in the pipeline a $100-million ceramics unit in the state.
Located on the north end of the Arabian Gulf coastline, Ras Al Khaimah joined the UAE as its seventh emirate. The company that is investing in its India projects is Rakeen, which specialises in realty and resorts.