INDIA BUSINESS WORLD - NOVEMBER 16^th - NOVEMBER 30^th - 2007

DSKDL-GTC JOINT VENTURE TO DEVELOP MULTI-SERVICE SEZ IN PUNE

The Pune-based real estate developer DS Kulkarni Developers (DSKDL) has formed a joint venture with the Netherlands-based investment company Kadaran to develop its 250-acre multi-service special economic zone (SEZ) in Pune. Kadaran, through its real estate arm GTC Real Estate (GTC RE), will invest around Rs 380 crore to develop the project.

"We have signed a term sheet with the GTC Real Estate for developing our multi-service SEZ in Pune," Sumit Arora, director, business development and strategy, DSKDL, said. The SEZ project is proposed to be developed through a 50:50 joint venture between DSKDL and GTC real estate.

Earlier, Singapore-based Real Estate Investment Trust (REIT) was on the verge to close a deal with DSKDL to develop the same SEZ property. However, the deal did not take off as difference of opinion cropped up between two parties, forcing DSKDL to abort the deal.

The DSKDL-GTC JV plans to develop around 12.5 million sq ft of commercial and 7 million sq ft of residential area. DSKDL officials said the project being a multi-service SEZ, more than 35 notified services are eligible to set up their operations in the process area unlike the sectorspecific SEZ, where only a particular sector is allowed to function.

GTC RE's shares are listed in Israel on the Tel Aviv Stock Exchange and are included in several of its major indices. Kadaran currently holds 65.7% stake in GTC RE.

DSK group has developed over 12.56 million sq ft of space and has development rights of more than 30 million sq ft spread over Pune, Mumbai and Bangalore.