News: US money for Bengal realty

(TT 22/08/2006) Calcutta - The US-based New Vernon Private Equity Limited has invested Rs 30 crore in International Infrastructure Limited (IIL), the company behind the city’s latest infotech park — Globsyn Crystals. The private equity player, which has picked up a 50 per cent stake in IIL, plans to invest in all asset classes in the country with a strong focus on real estate in Calcutta.

“There is a huge untapped market for IT and ITeS infrastructure in Calcutta. Besides, political stability, economic resurgence, low attrition rates and saturation of the other key cities make Calcutta a good place to invest in right now,” said Tariq Vaidya, principal of New Vernon.

Promoted by the Globsyn group and IIL, Globsyn Crystals is being touted as having the country’s first attrition-free working environment. The cost outlay for the IT park is expected to be Rs 100 crore and the entire project is expected to be completed by September 2007. The first phase of the project will be ready by March 2007.

Vaidya also said New Vernon’s strong investor portfolio would help attract further investment in the real estate industry.

“We plan to help IIL get tenants for Globsyn Crystals. We are here on a long-term basis, simply because we are going to see returns on our investment after at least four to seven years, if one takes the first three years as a gestation period,” said Vaidya.

IIL board member Pradeep Sureka said, “New Vernon has a great reputation and an investor portfolio with significant interest in the IT and ITeS space. It has great tenant relationships as well. This bodes well for the state, especially if one takes into account that this is the first FDI in real estate in the east.”

However, both Sureka and Vaidya declined to speak on the exit strategy of New Vernon. Vaidya could only confirm that the private equity firm would not be able to repatriate its stake for at least three years.