SmartCity Kochi, an artistic expression, Dubai Holdings will not pull out: File photo.Kochi: The major organizational restructuring at Dubai Holding amid speculation that the investment conglomerate would disassociate itself from all international projects would not have an adverse impact on SmartCity Kochi; a joint venture between Dubai Holding’s TECOM Investments and the government of Kerala.
The investment vehicle of the emirate's ruler would go ahead with the much-touted IT project as it is optimistic about the outlook for the free-zone business park. The developer is expecting rental incomes of Rs 280-300 crore per year from the 6,50,000 square foot IT complex alone. Another reason for the decision to not exit the SmartCity, Kochi project was that the Dubai government wanted to keep the historic and present day bonds with the state intact.
Following the restructuring aimed at focusing on growth in key priority sectors locally, an in-principal decision was taken to abandon its smart city projects in Lagos in Nigeria, and the South Korean capital of Seoul, while continuing with similar projects undertaken in Kochi and Malta.
The Dubai Holding, which has also decided to eliminate the Smart City-Dubai and TECOM Investments, is currently in the process of redeployment of its employees.
The Phase I of SmartCity, Kochi, including the 6.5 lakh sq ft IT tower, was inaugurated in last February. Around 20 IT companies have so far leased space in the complex. The developer has completed works on five buildings of SmartCity-Malta, and several multinational companies have already joined the project.
Dubai Holding has so far invested about Rs 400 crore in the Kochi SmartCity project. The works undertaken during the first phase included construction of bridges and substations. As the remaining structures would be built in partnership with co-developers, it would not incur any additional financial liability to Dubai Holding.
The state government is hopeful that the organizational restructuring at Dubai Holding would not have any bearing on SmartCity Kochi. Representatives of the developer have also promised the government that the project would be completed on time.
An official delegation from Dubai, including Dubai Holding chairman Abdulla Al Habbai and interim CEO of SmartCity Kochi Khalid Al Malik, is expected to hold a meeting with Chief Minister Pinarayi Vijayan, in September.
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