IVRCL to sign MoU for Rs 100-cr car parking project in Kenya

IVRCL Assets and Holdings Limited, a subsidiary of Hyderabad-based infrastructure major IVRCL Limited, is in the process of signing a memorandum of understanding (MoU) for developing an automated multi-level car parking terminal in east African country, Kenya, according to a top official of the company.

“We are in talks with the Kenyan government to sign the MoU, post which they will come out with a feasibility study for the project. If everything goes well, we expect the deal to conclude within this year,” said S Ramachandran, managing director of IVRCL Assets.

Speaking to Business Standard on the sidelines of infrastructure conference, Suminfra 2011, organised by the Confederation of Indian Industry (CII) here recently, Ramachandran said the capacity of the Kenyan project could be 1,000 cars, involving an outlay of about Rs 100 crore.

Once materialised, this would be the second car parking project for IVRCL Assets – which focuses on creating luxury-intensive urban infrastructure – with the first being in Chennai.

IVRCL Assets had bagged an automated multi-level car parking terminal project at Parrys Corner from the Chennai Municipal Corporation in February 2011. The Rs 40-crore project, to be executed on a design, build, own, operate and transfer (DBOOT) basis, involves creating parking space for 500 cars and 600 two-wheelers. The project has a concession period of 25 years.

“Work on the Chennai project is just beginning. We have one Korean partner with whom we are working. Financial closure will take place in 30 to 45 days and the project is expected to be completed in 18 months from now,” he said.

As part of the project at Parrys Corner, one of the central business districts of Chennai, IVRCL Assets has received 3,000 square metre of commercial space from the Chennai Municipal Corporation. Ramachandran said the company was in talks with commercial establishments to rent out the space.

“Our revenues will mostly come from this commercial space and advertisements. With Parrys Corner being a solid locality, we should be having a fairly good IIR (internal rate of return). We are talking to banks, and jewellery and garment retailers like Saravana Stores to make the project commercially viable,” he added.

IVRCL Assets’ scrip ended the trade at Rs 28.50 on the BSE on Friday, down 1.04 per cent, over the previous close of Rs 28.80.