BSEL nears Indonesia deal

Expects Rs 750 cr from Dubai projects this year

MUMBAI: BSEL Infrastructure Realty Ltd is in advanced stages of talks with the Indonesian government to develop projects there, said managing director Dharmendra Raichura.

It has recently signed a pact with Malaysia’s Iskandar Regional Development Authority to develop high-end waterfront residential and commercial properties in a 80:20 ratio.
Under the Malaysia deal, BSEL will invest Rs 18,000 crore in three phases over 12 years. Of the five economic zones that will be developed in Iskandar Malaysia, BSEL will invest in two zones.

“The first phase is for four years and our subsidiaries will invest Rs 2,000 crore. Rs 2,500 crore will be raised from investors and Rs 2,000 crore from debt,” Raichura said.
The company has to pay approximately Rs 300 crore to the Malaysian government over the next 18 months for acquiring land. BSEL hopes to finance that through revenues from its UAE project.

In the UAE, BSEL is developing seven residential projects spread across 7.9 million sq ft. Of these, construction in two projects is 35% complete. The entire project is slated to finish by June 2012.

Raichura added, “We earned Rs 400 crore from the Dubai project last year and expect to generate Rs 750 crore this year. We had invested Rs 2,500 crore at the beginning of the project one-and-a-half years ago.”

The company is also developing a project in Ajman (near Dubai airport). Raichura said, “The residential property price in Ajman is increasing by 10-15% every six months.”
At present, BSEL is developing 3 million sq ft in India, including malls, hotels and commercial complexes, and 8 million sq ft of residential properties in the UAE.

BSEL has also formed a 50:50 joint venture with Unity Infraprojects to develop realty projects. These include five shopping malls and one hotel property in Nagpur.
Construction has begun on three properties.

BSEL has developed a 400 keys four-cum-five star hotel property in Balewadi, Pune, which will be commercially opened in December this year.

Last week, it also received approval to develop a 7 million sq ft IT park at Goa with a total investment outlay of Rs 140 crore.

The land has been obtained from the government for 90 years.

pooja_s@dnaindia.net