Kerala Government Partners with International Property Consultants to Utilize Empty IT Park Spaces

TechnoparkToday ( Sept, 2023): Responding to concerns about underutilized land and built-up spaces in Kerala’s IT parks, the state government has embarked on a novel approach to optimize these resources. Kerala has initiated the process of seeking Expression of Interest (EOI) from accredited international property consultants (IPCs) to promote and fill these vacant areas.

The government has set a deadline for IPC applications, extending until September 15, marking the first instance of collaboration between IT park authorities and private entities to maximize the use of empty spaces.

Official government data reveals that approximately 20 million square feet of built-up space and 1,000 acres of land remain vacant across three prominent IT parks: Technopark in Thiruvananthapuram, Infopark in Kochi, and Cyberpark in Kozhikode, along with other satellite IT parks.

Sources close to Technopark indicate that IPCs will be responsible for marketing and allocating the vacant spaces to multinational IT companies or startups, ensuring their effective utilization. The state government has devised a fee structure for IPCs, equivalent to a two-month lease rate for companies occupying built-up areas and 1% of the specified lease premium for those leasing land.

IPC qualification criteria include a national and international presence and a successful track record of client transactions involving spaces exceeding 1 million square feet in the IT/ITES sector within the last five years. The initial application deadline, initially set for September 7, has been extended to September 15.

A senior IT official noted that while Infopark has a surplus of vacant built-up spaces, Technopark has more vacant land. Presently, Infopark has numerous private co-developers eager to sell their spaces, and Technopark Phases III and IV have over 100 acres of vacant land. This initiative aims to fill these spaces with company occupants.

Sanjeev Nair, CEO of Technopark, stated, “The empanelment aims to attract investments from International IT/ITES organizations, both in India and abroad, bolstering the promotional efforts of Kerala IT Parks. Empaneled agencies will receive transaction/success fees for bringing in new clients. IPCs will receive rent equivalent to two months’ worth (excluding tax) for IT built-up space and a 1% transaction fee (excluding tax) for land leases. This approach has the potential to create numerous job opportunities within the state and position Kerala as a global IT hub.”

In related news, the first IT building, named “Niagara,” within the Embassy Taurus TechZone at Technopark Phase III, is expected to be commissioned in December. An official launch event is in the planning stages, and the entire building has already been allocated to tenants.

Currently, interior work and fit-outs for the tenants are underway, and the building will be officially commissioned once it is fully occupied. Allianz and Acsia have already secured space in this 1.5 million-square-foot office building, with more companies expressing interest.

The Taurus Downtown Trivandrum project by Boston-based Taurus Investment Holdings is expected to significantly impact the state’s IT industry by housing several renowned multinational tech firms. Additionally, the non-SEZ project, Taurus Yosemite, has secured leases for 50% of its space even before construction has commenced.

A twin building, “Victoria,” with the same square footage and number of floors as Niagara, is slated to be constructed near the Niagara building. This SEZ building is expected to commence construction in December, following the official launch of Niagara.

Unutilized Land and Built-up Spaces in Various Kerala IT Parks:

Technopark

• 128 acres of land
• Space – 35,000 square feet built-up space
• Technopark Phase- IV – 118 acres of land and 15,000 square feet of built-up space
• Phase 3 – 10 acres
• Technopark Kollam – 20,000 square feet of available built-up space

Infopark

• 1,25,000 square feet in Infopark Thrissur (Koratty)
• 1,40,000 square feet in Infopark Cherthala
• 20,000 square feet built-up area in Infopark Kochi

Cyberpark

• 23 acres of land