SAN DIEGO-(Business Wire)-March 20, 2007 - Silicon Border Development and ING Real Estate announc... Silicon Border Partners wi
SAN DIEGO-(Business Wire)-March 20, 2007 - Silicon Border Development and ING Real Estate announced today they have agreed to enter into a Joint Venture to develop, construct and operate the Mexicali Science Park. The Science Park will be designed to attract capital-intensive, leading-edge manufacturing operations for semiconductors, flat panel displays, solar panels, and biotechnology products. Science Parks differ from Industrial Parks in that they are designed to house everything required for leading-edge manufacturing. In addition to special wiring and plumbing for high-quality power and water, the Park will feature a university, technical training and research facilities, all located within the park. The Science Park will be laid out like a college campus with recreation facilities including soccer, baseball, tennis and golf, as well as a clubhouse in which employees, executives, and academia can interact. The Mexicali Science Park will be modeled after science parks in Asia and is expected to be the first of its kind in North America. The border location enables the cost structure to be competitive with those in Asia, including China, Malaysia, Singapore and Taiwan.
ING will provide the capital required for the first phase, and has agreed to participate in three additional phases over the next 10 years. The Science Park is a 20-year plan in which over $1 billion is anticipated to be spent for infrastructure including commercial services, highways, power generation and water treatment.
D.J. Hill, Chairman & CEO, said: "The trend that has shifted manufacturing to South Asia over the last 20 years has been driven by the pro-business attitude of governments there. Government and private enterprise are working together to create special locations incorporating the infrastructure and incentives needed for capital-intensive factories to operate effectively in one location. Silicon Border Development has joined with a number of public and private Mexican entities (federal government, state government, academia and business) and now with ING to create an environment that competes head-on with the best locations in Asia in terms of operating cost, human capital development, and factory infrastructure. North America now has its own leading-edge technology haven that will enhance effective competition with the rest of the world."
Mr. James Hendricks, Managing Director of ING, said: "Mexico has been successful in attracting companies from around the world. This agreement is a natural progression, enabling our venture to participate in leading-edge manufacturing, overall because of the stable environment and aggressive support for job growth and education. We see tremendous opportunity in Mexico's commercial real estate sector; we have been making investments around the country and will continue to do so. Going forward, we expect our Silicon Border partnership to open the door to opportunities to provide sale lease-back services to the world-class companies who will come here for the special infrastructure Silicon Border, the State and Federal Government are providing."
Octavio Garza, President of Silicon Border, said: "The state government of Baja California has been a great supporter of Silicon Border because it will bring to Mexico the companies who provide high-tech jobs for the people of Mexico, increasing our ability to participate in manufacturing the most advanced products in the world. Currently many Mexicans are involved in these processes, but, up to now production is largely outside of Mexico. We are providing the opportunity to change that. This is directly in line with the goals and aspirations of President Calderon. We are proud to support his goals for the country and for our governor's goals for Baja California."
Mr. Hill said: "We have been working with leading companies in high technology around the world in the design of this park and expect to announce tenants in the second quarter of this year. The quality of our financial partner makes the difference between regional success and global success, we are very happy ING has agreed to share the vision and the opportunity with us."
Silicon Border is a 10,000-acre high-technology science park catering to the specialized needs of the semiconductor process technology and other capital-intensive technology sectors. Planned for development along the U.S.-Mexico border in Mexicali, Silicon Border enables a cost-effective and competitive manufacturing alternative in North America for emerging and global companies. Improving upon the world's leading technology parks, the park's 15 square miles of world-class infrastructure and education will support the stringent requirements of the semiconductor, flat panel display, solar, aerospace and biotechnology industries. More information about Silicon Border is available online at www.siliconborder.com.
Founded in 1982, ING Clarion and its affiliates manage more than $45 billion in assets in the private equity, public equity, and public debt sectors of the real estate markets. Headquartered in New York, the ING Clarion organization has more than 600 employees located in major markets throughout the United States. The firm is the U.S. investment management arm of ING Real Estate an international real estate company, active in real estate investment management, development and finance. The company ranks among the world's strongest real estate players with offices in 21 countries in Europe, the United States, Asia and Australia. ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in more than 50 countries. With a diverse workforce of about 120,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand. More information about the firm is available at www.ingclarion.com.
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