In partnership with US-headquartered alternative asset manager Apollo Global Management, Chennai- based Olympia Group announced that it will be investing Rs 750 crore on a 1.1-million sq ft greenfield IT park in Chennai to be developed over a span of three years.
The Olympia Group and Apollo Global will hold a 51%-49% stake in the venture. Apollo Global is one of the world’s largest alternative investment firm with assets under management worth $280 billion as of September 2018. Olympia Cyberspace, a unit of the Olympia Group, will be developing the park located in the city’s prime Guindy area. The park is expected to accommodate over 12,500 IT professionals. It will also house coworking spaces.
Ajit Kumar Chordia, managing director, Olympia Group, said, “The ongoing demand for office space in the city has prompted the development of IT Park. We are confident that this facility will attract IT/ ITeS MNCs that benefit from the state-of-the-art amenities at a strategic location.”
The real estate group had earlier purchased the property from Exide IndustriesNSE 0.58 %, said Chorida. The land parcel was one of Exide’s battery manufacturing facilities for over five decades and later become financially unviable and had been lying idle.
The group is confident that it will be able to attract interest from multinational companies due to rising demand for office space within the city. “Being within the city and with the location advantage and the existing client base, we are confident of leasing the building much faster. We have also started participating with requests for quotes (RFQs) to large companies that are looking to set up base in Chennai,” Chordia said.
The group already has a technology park in the area spanning 1.5 million square feet. According to a recent report by CBRE, office space supply rose by 46% during the January-March period in nine major cities, including Chennai to 13.4 million square feet compared to 9.2 million square feet in the same period in 2018. During the period, office space supply went up in Chennai to 0.5 million square feet from 0.2 million square feet, the report said.
News Source: Economic Times, Url: https://bit.ly/2Hg4FKZ