Royal Indian Raj International Corporation (RIRIC) today announced that it has secured a GBP 300 million (US$547 million) equity commitment structured as an equity line of credit through UK-based GEM Global Emerging Markets’ Global Yield Fund.
The equity line, one of several instruments RIRIC is using to develop planned, private cities in India, will be utilized for the inaugural Royal Garden City in Bangalore, with construction scheduled to commence in Fall 2005. The Royal Garden City Project is currently preparing to list on a UK Exchange. The project will be completed in phases by 2015. “We are delighted to be working with GEM to develop the New India,” said Manoj Benjamin, Chairman of Royal Indian Raj International Corporation. “Our strategic partnership will help us realize our goal of modernizing housing and businesses in this country. A cornerstone of the announcement is GEM’s full support of creating an economic and technological connection between East and West, with a focus on creating thousands and thousands of jobs.
“We see the integrated township format as a key driver of future housing supply and as a catalyst for the much-needed infrastructure investments in the rapid urbanization of India. The Indian Government has spelled out key incentive policies to provide an impetus towards easing the flow of private investments, and Royal Garden City is one of the first to have been conceptualized and planned to meet this objective.”
Royal Garden City, which has been approved by the government of India’s Foreign Investment Promotion Board, is situated outside the Bangalore city centre in close proximity to the new Bangalore International Airport. The first phase of the 6,000-acre development will be built on 3,000 acres and will include 13.59 million square meters of built-up space. The project is Asia’s largest new city development to date and is expected to become the model for new city developments in the country.
The private city will utilize global technology and high standards of urban planning infrastructure. The first modern “Smart City” in India and completely web-enabled, it will provide a world-class environment with 21st-century infrastructure standards, including captive electrical generation, modern water, and sewage treatment plants, and advanced water recycling and harvesting.
The first phase, an $US8.97 billion project, will include 35,000 residential units, a central business district, industrial district, entertainment district, parks, restaurants, shopping, educational facilities, and civic amenities. The city will also include mega malls, a transport hub, exhibition/showrooms, and entertainment facilities such as amusement parks, botanical gardens, aquariums, stadiums, multiplexes, golf courses, and parks and gardens.