US-based private equity companies Starwood Capital and Walton Street Capital along with Shriram Properties will pick up a 33 per cent stake each in Bengal Shriram Hi-Tech City Private, the special purpose vehicle to develop the Rs 5,500 crore integrated IT township and auto park in Hindustan Motor's Uttarpara plant in West Bengal.

Hindustan Motors will retain about one per cent stake in the project, which covers 314 acres. Initially, all three companies will contribute Rs.100 crore each and increase that contribution according to the requirements of the project.

Hindustan Motors had recently entered into an agreement with Bangalore-based Shriram Properties to jointly develop the land. The company will receive about Rs.295 crore in five tranches spread over the next ten quarters as well as a non-compete fee of four per cent of the sale proceeds of the project.

Construction of the project is expected to commence July 2008 and will be completed in six years.