Emaar to pump $150 mn into specific projects

New Delhi: Emaar Properties PJSC of Dubai has decided to pump in $150 million into specific projects of Emaar MGF Land Ltd, the Indian joint venture between MGF Development Ltd and itself.

“Emaar has agreed to put in $150 million into specific projects. The investment is not happening at the overall joint venture level. Details such as the specific projects they will invest in, and the quantum of stake they will pick up in those projects, are currently being worked out,” Mr Sanjay Baweja, Chief Financial Officer of Emaar MGF Land Ltd, said.

At present, MGF Group holds 53.3 per cent stake in the real estate company, Emaar has 41.9 per cent, and various private equity firms the balance 4.8 per cent stake. Earlier this year, the real estate company had withdrawn its initial public offering, following a market turmoil.

“Emaar has decided to make fresh investments into various projects as they see the robustness of the Indian venture. Also, they are confident about the value creation by the company,” Mr Baweja pointed out.

The company which commenced operations in India in February 2005 focuses on development of properties in residential, commercial, retail and hospitality sectors. In addition, it has also identified healthcare, education and infrastructure as areas for future growth. In the commercial arena, it is focussing on developing, selling and leasing office and SEZ properties in various sectors, including IT and ITES.

In the retail business, the company is developing shopping centres within the integrated master planned communities and on a stand-alone basis, large regional destination malls and luxury retail space at the luxury hotel developments.

It has also entered into joint ventures with Accor for the development and operation of budget hotels and Premier Travel Inn for the development and operation of mid-market category hotels in India.

Further the company has also formed alliances with global hospitality majors such as Hyatt, InterContinental Hotels Group amongst others.