• God's own country to catach Volvo Ocean Race (18/01/2008)

It's the first for India, and it's an added feather in Kerala's hat. The Kerala Tourism along with the Kochi Port Trust is bringing the world's premier catching event - Volvo Ocean Race - to India. The deal will be sealed on 25th December 2008, which then officially make the Kochi Port and Kerala one of the glamourous ports and states on the world map. Here's how: The Volvo Ocean Race is a 33,000 nautical mile odyssey of unimaginable highs and desperate lows, that is played out on a worldwide stage over nine months. It takes place in key cultural and economic regions across the globe as well as the remote reaches of the planet.

Dr.Venu, secretary, Kerala Tourism, said, "I see this as an opportunity for Kerala Tourism to be featured in the same league as Rio and Singapore. For yatching lovers, the race will ensure that Kerala becomes a familiar name. The Volvo Ocean Race is targeted for the luxury and elite segment of world travelers, which constitutes the top 1-2% of the global population. We are attempting to attract this segment of travelers and position Kerala as a yatching destination."

The overall budget to host such a event - which is scheduled to touch Kerala on December, 2008 - is pegged at Rs.15 crore. Starting in Alicante, Spain in late 2008, the race is looking at a course that could navigate through Cape Town, Kochi, Singapore, Shanghai and then go on to South America and the US.

Mr.N.Ramachandran, chairman, Kochi Port Trust, said, "We've just completed and finalised the draft agreement with the Volvo Ocean Race. The yatchs will be docked here until the December 13, 2008. The 10 days will encompass a number of in-port events and will replicate a festive activity including events such as in-port racing and number of cultural events. The aim is to draw a number of Indian and foreign tourists."

Close to 5,000 hotel rooms will be required at this time to host the estmated number of travelers in Kerala. The plan is also to televise, and hence bring in some broadcasting revenue for the sport, apart from positioning Kerala as a cruise destination. Interestingly, the Volvo Ocean Race charges Euro 10 million as a license fee to be a part of the event. However, the race has made an exemption for India, as it is hosting it for the first time.

Andy Hindley, race director, Volvo Ocean Race, said, "We decided to exempt India (Kerala) as we belive we will leave our sailing legacy behind. Secondly, it makes very good sense for our sponsors apart from Volvo such as Erickson, Puma and a Lenta, a leading retail chain in the US. Mr.Hindley also said that India was an opportunity for a new route as the attempt was to move the race away from the traditional route which was South Africa, Australia, New Zealand and then Brazil. "We considered four ports in India and looked at Mumbai, Chennai, Goa and Kochi."
Courtesy Economic Times

• Kochi's the new realty hotspot - Developers like DLF, Purvankara, Ansal & Emaar have invested over $2.5bn; Prices are up 60% in 2007. (4/01/2008)

The queen of the Arabian Sea is now a hot destination for real estate giants. What is unique to Kochi is, the city has attracted almost every domestic property developer worth its salt, and a slew of foreign companies, mostly from the middle East.

Leading real estate developers like DLF, Sobha Developers, Ansals, Purvankara, Confident Group, Oceanus, Unitech, Nitesh Estates, Housing Development and Infrastructure (HDIL), Prestige Group, Emaar MGF and Parsvanath Developers have all descended upon Kochi, the financial and industrial capital of Kerala, during the last 6-8 months with a cumulative investment of over $2.5billion. Prominent among the Middle East based business groups that have forayed into Kochi are KGA Group of Kuwait, EMKE Group of Abu Dhabi and Indroyal. Some of them are also investing in the hospitality sector to set up luxury hotels chains.

Property prices in the city have appreciated by around 60% in 2007. During the past six months, half-a-dozen developers have announced their plans to enter Kochi; many have already acquired huge parcels of land. Property development and real estate activities have overshadowed the state's tourism sector. This boom witnessed the emergence of many developers and projects, an industry observer and a former builder said.

Recently, HDIL purchased a 70-acre plot from the government-owned HMT and announced its plans to set up an IT Park at Kalamassery, near Kochi. HDIL is also setting up a Cybercity in the HMT land, which will have IT space, hospitality, retail and entertainment projects. The total investment in the project is estimated to be around Rs.2000 crore.

According to Kerala Builders Forum chairman George E George: "Till a decade ago, real estate activity of each city was driven by local builders." The bigger players acquired the financial muscle to launch multi-city operations after they raised resources through public issue route. "Even then, many of them missed the bus in Bangalore and Chennai as the rates peaked before their entry," he said. "I think they have spotted the opportunity in Kochi and are moving in early," he added.

Sobha Developers is setting up the largest township in Maradu, Kochi, called the Sobha Hitech City. Maradu is a high-potential suburb of Kochi with commercial projects, 5-star hotels, shopping malls and IT projects. The total investment in the project is estimated at around Rs.5000 crore. Nitesh Shetty, CMD of Bangalore-based real estate firm Nitesh Estates, said the Kochi skyline has changed dramatically over the last few years and today it is one of the fastest growing cities in the country. The city offers grand investment opportunities for real estate mainly due to reasons such as large NRI population who want to buy homes in Kochi and increasing IT jobs in the city. His company recently acquied around 5 acres of land in Kakkanad near Kochi.

Similarly, in 2006, India's real estate giant DLF purchased 3.78 acres in Kochi from the state government for Rs.78 crore. The DLF Group is planning to build a shopping mall, a multiplex and a 250-room deluxe hotel in Kochi. Kochi is poised for a quantum leap. The commissioning of Vallarpadom International Container terminal and numerous IT parks will make Kochi the preferred destination for highly-paid executives," a senior HDIL official said.
Courtesy Economic Times