Hyderabad, Oct. 9 SuchirIndia Developers (P) Ltd today entered into a memorandum of understanding with the representatives of Ministry of Foreign Affairs of Kyrgyz for setting up of a ‘Diplomatic City’ with an investment of nearly $100 million.
This mandate includes construction of office space for embassies, multi-storeyed residential complexes, school, hospital and a convention centre.
The MoU was signed by Dr Y. Kiron, Chief Executive Officer of SuchirIndia, and Mr E. Suvanov, General Director of State Enterprise Kyrgyzdepservice, here today. This project, where SuchirIndia will hold 94 per cent stake and the rest Kyrgyz, would funded by equity and debt in the ratio of 1:1.5. The Kyrgyz authority has allotted a 13 acre site for the project.
The Chief Financial Officer of SuchirIndia, Mr Krishna Yeachuri, said that the company was in talks to raise about Rs 200 crore to part fund its expansion projects which include the Kyrgyz Diplomatic City and projects in Colombo.
The Diplomatic City project envisages one million sq. ft of built up area. Part of the investment would be through the company’s internal accruals and the rest through advance from those planning to establish their offices in the proposed city where all embassies would locate their offices, Mr Kiron said.
“We have a land bank of 400 acres. Of this, 70 acres are located at Nandi Hills near Bangalore. The land bank is conservatively estimated at over Rs 500 crore,” Mr Krishna Yeachuri said.
Referring to the Colombo projects, Mr Kiron said that work on the 40-floor commercial tower, Colombo airport hotel and residential area would commence in January 2010.