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Our Bureau

The $110-m facility to be located in Ambattur Industrial Estate

Chennai , Nov. 6

Old Lane, a New York-based private investment firm, has entered into a 50:50 joint venture with RR Industries to set up a $110-million information technology park in Chennai.

The 24-storey IT park will be located over 10 acres in the Ambattur Industrial Estate and will cover 2.2 million sq ft. This will be a two-tower structure and the two structures will be connected by a multi-storey car park spreading over four-lakh sq ft. The floor area will be 60,000 sq ft in each tower per floor.

The facility would be dedicated to IT and ITES companies registered with the Software Technology Parks of India (STPI), Mr R. Ravi, CEO and Managing Director RR Info Park, said.

The project is slated to be ready in two phases between June and September 2007.

Mr Guru Ramakrishnan, Managing Director, Old Lane, said that financing for the project would be in the form of promoter funds, client deposits and bank debt. About $45 million would be equity.

Mr Ramakrishnan said that Old Lane had over $4 billion of asset under management including a $500-million India-dedicated private equity fund. This fund will invest in infrastructure, real estate and corporate sector. In India, in the infrastructure sector, Old Lane has entered into joint venture with IDFC.

The other joint venture is with JM Financial to launch a private equity fund to invest in corporates. The venture is looking to raise about $200 million and hopes to roll out the fund in the next few weeks with the money to be raised in about three months from the rollout.

The money will be raised in India and will be invested in companies that require early stage financing or pre-IPO funding. The fund may be named JM Old Lane India Opportunities Fund and will invest in companies, which have capability to influence the management, help grow the business, provide the right international connections and be an active partner.

He said that Old Lane expected to deploy its entire India fund over the next two to three years.

Mr Ramakrishnan said that India would experience a four-fold increase in infrastructure and real estate spending by 2010. The investment opportunities are in IT parks, commercial, residential, hospitality and integrated township projects.

He said that there is a shortfall of over 19 million residential units currently in urban India. A further 350 million sq ft of commercial space is required for business operation by 2013. These projects require significant investment and the investment opportunity is to focus on providing integrated townships.

More Stories on : Infrastructure | Alliances & Joint Ventures | Tamil Nadu

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