Old Lane, RR Inds in JV for $110mn IT park

US private investment firm Old Lane and city-based infrastructure development company R R Industries today announced a joint venture to set up an information technology park on the outskirts of Chennai.

A total of $110 million (Rs 510 crore approx.) is being invested in RR Skyline project, for which Old Lane and RR Industries will put in $45 million on a 50:50 basis. The balance would come by way of client deposits and bank borrowings, Guru Ramakrishnan, co-founder & MD of Old Lane, and R Ravi, CEO of RR Inds, said here.

Old Lane has been founded by former Morgan Stanley executives, Guru Ramakrishnan and Vikram Pandit.

Spread over 2.2 mn sqft at Ambattur Industrial Estate, the project is touted as the single largest building in India. It is expected to be built in two phases between June and September 2007.

Old Lane has more than $4 billion (Rs 18,000 crore) in asset management, including a $500 million (Rs 2,250 crore) India dedicated private equity fund, which is to be invested in infrastructure, real estate and corporate sectors, Ramakrishnan said.

"India will see a four-fold increase in infrastructure and real estate spending by 2010. We see very interesting opportunities in IT Parks, commercial, residential hospitality and integrated township projects," he said.

"There is a shortfall of more than 19 million residential units in urban India...A further 350 mn sqft of commercial space is required for business operations by 2013," he added.