The $6.5 billion ETA Ascon Star Group is planning to dilute its stake in Star Tech City, the special purpose vehicle set up to promote an integrated township at Sriperumandur, 50 km from here.
Ahmed Shakir, managing director, ETA Star Property, said the company had initiated talks with private equity investors to partially fund the project “In most of our projects debt portion is around 70 per cent while equity is 30 per cent,” he said.
In 2008, the company had signed an agreement with the state-owned Tamil Nadu Industrial Development Corporation (Tidco). The cost of the project then was Rs 3,750 crore. However, Shakir said the cost would be revised due to increase in raw material price, labour cost and other factors.
Under Phase I, which would commence next month, the company is planning to develop around 60 acre of residential flats and commercial complex with an investment of around Rs 160 crore. It is looking at developing 400 units of flats for the mid-segment. “The starting price will be around Rs 13 lakh,” he said
The project to be implemented in three years would create a built up space of 17.5 million square feet for apartments, houses, bungalows, shopping mall, car park, hospitals, schools, hotels and service apartments on about 350 acres.
It would also include IT and ITeS special economic zone on about 50 acres. The company has signed up with Mumbai-based Ryan International Schools for developing a school in the SEZ.
ETA Ascon Star Group is into civil construction, real estate, power projects, and shipping among others.