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Kshitij Investment to set up market cities

Rajesh Abraham  |  Mumbai 

Kishore Biyani's Future Group-promoted Kshitij Investment Advisory, which manages the country's largest retail-focused real estate fund 'Kshitij Venture Capital Fund' (Rs 350 crore) and 'Horizon International Fund' ($350 million), is establishing seven 'market cities'.
The proposed cities will be complete leisure-cum-shopping destinations with convention centres, food plazas, shopping malls, service apartments, cinemas and even residential complexes.
The market cities are being built over 17 to 30 acres of land, and they are coming up within the city limits of Mumbai, Chennai, Bangalore, Hyderabad and Pune, said CEO,
Baijal said the concept of a market city will be the first of its kind in the country, though similar centres exist in other developed such as Singapore and the US.
"Each market city will retain the flavour of that particular city. It will be a complete destination catering to all the consumption needs of the individual," he said.
While designing the centres, Kshitij will take into consideration an individual's social and emotional needs as well. "It will be a high street type of shopping experience," Baijal stressed.
Reputed international architects such as Benoy Group of architects of UK, RTKL of London and Walker Group of New Zealand have been hired for establishing the market cities.
A total of $230 million from the Horizon International Fund and the entire corpus of the Kshitij Venture Capital has been committed for the development of the market cities. The Kshitij Venture Capital Fund, which will be funding the Chennai market city, is also developing another 11 properties.
Kshitij Investment Advisory operates as a hybrid between a property developer and a fund. "We handle and operate the fund. We will be associated with the projects throughout the cycle of development (of projects)," Baijal said.
The two funds are looking at a lifespan of 9-10 years. By that time, Kshitij will look for an exit route for the investors, depending on the policies at that point of time.


First Published: Wed, September 05 2007. 00:00 IST