Tishman Speyer eyes new projects in India

Tishman Speyer eyes new projects in India

Hyderabad: New York-based real estate firm Tishman Speyer Properties Lp, which launched its first completed Asian property in Hyderabad on Tuesday, is upbeat on India and eyeing potential new projects and acquisitions, said chairman and co-chief executive officer Jerry Speyer.

“We have several projects in pipeline and we are hoping to spread our business in both Mumbai and Delhi," Speyer told reporters, declining to give details about the firm’s plans, including the possible new projects and acquisitions.

He said the company is also “working on some land parcels to acquire in India" on which, too, he gave no details.

Tishman Speyer had delayed ventures planned in India because of the global economic downturn. The firm’s township projects, one each in Hyderabad and Chennai, are nearly three years behind schedule.

Only the first phase of the office space project for information technology firms in Hyderabad has been completed and was inaugurated on Tuesday. The occupants so far include Tata Consultancy Services Ltd and Accenture Ltd.

Work on the Rs700 crore second phase of the project will begin by the year-end and will be completed in two years, said Speyer. The first phase cost Rs600 crore.

Tishman Speyer may invest more in Hyderabad property after the groundbreaking of its next project, a 100-acre township at Tellapur in the city, sometime in the first quarter of next year. The company has reduced the size of the township project from 400 acres to 100 acres because of some “technical issues", Speyer said.

India’s property market is recovering after being hit by a slump in demand during the economic downturn of 2008-09. Hyderabad’s property market has suffered also because of political instability and unrest stemming from a campaign for the creation of a Telangana state out of Andhra Pradesh, of which the city is the capital.

“I am confident that our company will continue to make major investments in Hyderabad," said Speyer, without mentioning a figure. He said Tishman chose Hyderabad as its first Indian destination because of its modern infrastructure, including a new airport and highways.

Tishman Speyer’s investments plans mirror the confidence of foreign real estate firms in India’s growth prospects, said Naresh Dandapat, regional director (south) of property services and research firm Knight Frank India. There are signs of revival in Hyderabad’s property market as well, he added.

Speyer said his company had “more than adequate funds" for its Indian operations. Tishman Speyer raised some $2 billion (Rs9,340 crore today) funds in the last four-five months for investments, he said.

“Capital is usually not the problem. The problem usually is the right opportunity," Speyer added.