Atlanta to build Rs 9,500-cr entertainment city

Mumbai-based Atlanta will build a Rs 9,500-crore entertainment city on 3,200 acres at Suvali (20 km from Surat) on a public-private-partnership mode.

Atlanta is into real estate, infrastructure and mining with an order book of over Rs 1,950 crore.

Mr Rajhoo Bbarot, Managing Director, Atlanta Ltd, told

Business Line that he had inked a memorandum of understanding with the Gujarat Government and the concession period was 36 years. The project was scheduled for completion in 36 months. Other financial terms such as the quantum to be paid to the State Government annually were yet to be finalised.

Mr Bbarot said the land was in possession of the government and there was no resettlement or rehabilitation component to be addressed.

The promoters of Atlanta would bring in Rs 1,000 crore as equity and the debt component would be Rs 3,000 crore. Atlanta was scouting for a partner with competence in running theme parks as five would be set up at the site, besides a nature park over 270 acres. “We are looking for a partner who would bring value to the table by way of expertise in running theme parks similar to Sentosa or Disneyland, besides picking up a 26 per cent stake in the special purpose vehicle created for the project,” he said.

Three hotels – two star hotels and a budget hotel – would be built on the premises. The company has also planned one crore sq.ft of built up area comprising 4,000 villas and studio apartments for visitors which would be given out on a time-sharing model. A mini film city has also been planned.

Atlanta hopes to raise Rs 5,500 crore by way of deposits and advances from the proposed facilities, including hospitality.

The financial closure, environment clearance, finalising architects and consultants would take six months after which construction should begin in February 2012, Mr Bbarot said.