AHMEDABAD: For the first time, both domestic and international investors can participate as co-developers in commercial ventures within GIFT City Multi Services SEZ, according to officials of the International Financial Services Centre Authority (IFSCA).
This opportunity emerged after the Union minister of commerce granted approval to an investor’s application for co-developer status in GIFT SEZ’s commercial tower Pragya, which houses the IFSC Authority headquarters and was developed by Savvy Group.
A GIFT IFSC official said, “The ministry of commerce providing investors with a co-developer status at GIFT City SEZ is a significant development. Earlier, SEZ did not enable a co-developer status, which was a major hindrance for developers to take investors on board. We believe, with this model, investors will also be able to allot space to the incoming units on lease.”
According to sector specialists, investors can now obtain property rights and lease properties to organisations establishing offices in GIFT SEZ. IFSCA officials anticipate that this modification will accelerate SEZ development, as property developers can exit projects post-completion.
Jaxay Shah, founder and CMD of Savvy Group, said, “We have been working on the model to provide global investors a platform to participate in the GIFT IFSC. The approved model would now provide real estate developers with much-needed investment and exit mechanisms. This would ease the financing requirements at the development stage and, at the same time, give Indian and global investors the opportunity to invest. This will enable builders in GIFT SEZ to transfer the property rights to buyers, and buyers will be required to purchase rights of a minimum of one floor to become a co-developer.”
Shah further noted their development of 7 million sq ft in GIFT SEZ and substantial interest from Indian and international investors. He anticipates this change will attract substantial investment across Indian SEZs, particularly benefiting GIFT IFSC SEZ, supporting their objective of creating 100,000 jobs in the near future.
