Group to launch township project in well-connected suburban location in 7th largest metropolis in India; Project receives Special Economic Zone (SEZ) approval

Hirco Developments to manage and market the project MUMBAI, India--(Business Wire)-- Hirco Group, India`s largest residential builder and developer of prestigious mixed-use townships, is pleased to announce the launch of Hiranandani Palace Gardens, Ahmedabad.  

The Ahmedabad project consists of mixed-use commercial and residential space. 3 million sq. ft. will be developed in the first phase. This project is similar to its projects in Chennai and Panvel which are co-invested with Hirco Plc (AIM: HRCO). The project has received approval as an IT special economic zone (IT SEZ). Hirco Developments, a Group company, will be responsible for project delivery and marketing.  

Hiranandani Palace Gardens, Ahmedabad will be strategically located with easy connections to Changodar and Belwa, the two main industrial belts of Ahmedabad. The township will be in the Ahmedabad development zone which also houses the Nano factory of Tata Motors. The site is 17 kilometers from the City centre and CBD at Ashram Road. The township will comprise of mixed use residential and commercial properties together with the social infrastructure such as entertainment, shopping, clubhouse etc.

  "We are very pleased to announce the launch of our next development in Ahmedabad. The project is very much in line with our strategy of building integrated townships for India`s rising and increasingly affluent middle class in well-connected suburbs of major cities. The township will be modeled on the same successful formula as our townships in Powai and elsewhere, providing high quality real estate with world class infrastructure," commented Mr. Niranjan Hiranandani, Chairman, Hirco Group.  

Mr. Hiranandani further added "We continue to execute our strategy, it is a `once in a generation` opportunity to buy real estate in India. The current global credit crisis has significantly impacted the Indian real estate sector not only in land prices but also other raw materials. We also see a lot less competition in the market from small developers the flight to quality established brands like ours. Through the latter part of 2009 and early 2010 we will see the market steadily bottom out. We are also seeing demand from investors who are reallocating their asset portfolios and look at current values as a asset protection tool to preserve capital and fight inflation .We continue to cautiously take advantage of these once in a generation opportunities."  

Ahmedabad is the major city in the state of Gujarat - a leading industrial state in India, noted for its rapid growth and business-friendly environment. Gujarat accounts for 14% of India`s exports and 16% of investments, and the state GDP has been growing at the rate of 9%. On many indicators such as power consumption, cellular connections, car ownership Gujarat outperforms the national average by 2 to 1.  

With a population of approximately 4.5 million people, Ahmedabad is the 7th largest metropolis in India. Ahmedabad has many educational institutions, the most famous of which is Indian Institute of Management, a world-class business school. The information technology industry has also developed significantly in Ahmedabad. A NASSCOM survey on the "Super Nine Indian Destinations" for IT-enabled services ranked Ahmedabad fifth among the top nine most competitive cities in the country.  

Many large Indian companies, such as the Nirma Group, are headquartered in Ahmedabad. In recent years a number of foreign companies have set up facilities in Ahmedabad. Amongst them are Bosch Rexroth of Germany; Stork, Netherlands; Rollepaal, Netherlands and Johnson Pumps of Sweden. Ahmedabad is also the largest supplier of denim cloth in the country and one of the largest exporters of gems and jewelry in India.  

About Hirco Group 

Hirco Group of companies includes the various operations in India and the Middle East of Hiranandani, India`s largest residential builder and leading developer of prestigious mixed-use townships for the country`s increasingly affluent middle class. Hirco`s modern, large-scale developments - combining high quality residential, commercial and retail components with green space and social and recreational facilities - are strategically located in suburban areas outside major city centres.