Akruti Nirman ties up with DLF for IT park

Real estate developer Akruti Nirman has tied up with India's largest real estate company DLF for setting up a massive IT park at Hinjewadi, Pune.

The Hinjewadi IT park will be built on five million sq ft. The first phase of the project, covering 1.2 mn sq will cost about Rs 183 crore.

The IT park complex, scheduled for completion in June 2012, will have eight buildings, aggregating approximately 5 million square feet of saleable and lettable commercial space.

The company, which plans to go public early next year, has lined up several residential, commercial and retail projects to be developed over the next few years, apart from drawing up plans to launch pan-India development operations.

The company has been valued over Rs 4,027 crore for its properties that are under development, not considering the properties being acquired.

According to the information given in the Draft Red Herring Prospectus filed with SEBI, Akruti Nirman plans to take the big plunge to spread its real estate activity throughout the country.

The company is evaluating the acquisition of land or development rights in other cities with growth potential like Jaipur, Delhi, Chennai, Ahmedabad, Hyderabad, Bangalore and Baroda.

Sources familiar with the development estimate that Akruti, as of now, has over 13 million sq ft, on which residential, commercial and retail complexes will come up. The company plans to develop over eight million sq ft of commercial complexes, 3.6 million sq ft of residential and about 2 million sq ft of retail complexes.

Riding the retail boom, the company has embarked on plans to construct six massive malls in and around Mumbai with the sizes going up to a whopping one million sq ft.

To part finance its various projects, Akruti Nirman proposes to soon enter the capital market with a public issue of 6.7 million equity shares of Rs 10 each through 100 per cent book-building process at a premium to be decided later.

The company proposes to use the net proceeds of this issue to finance the acquisition of landsights in lands and development rights and to finance the construction and development costs for some of the projects under development.