Billionaire Gautam Adani's group is in advanced talks to acquire real estate company Emaar India for an enterprise value of around $1.4-1.5 billion as it looks to expand its property business, according to sources. Dubai-based Emaar Properties entered the Indian real estate market in 2005 in partnership with India's MGF Development and invested Rs 8,500 crore through the joint venture firm Emaar MGF Land.
Despite repeated reports of strained relations between the domestic and the overseas partners in the last few years, he denied that the two firms are moving towards a split.
Emaar MGF, a joint venture between Dubai-based Emaar Properties and India's MGF Developments, is likely to invest about $12 billion in India in the next five years for setting up nine special economic zones and 50 hospitals.
The Enforcement Directorate on Thursday conducted searches on the premises of realtor EMMAR MGF in connection with the multi-crore illegal Hawala and investment case involving former Jharkhand Chief Minister Madhu Koda.
Emaar MGF and Accor on Monday announced a joint venture to bring the Formule 1 brand of budget hotels to India. The new venture, Budget Hotels India, has planned investments of $300 million over ten years.
The JV will plough the funds into its property development biz in India.
Leading United Arab Emirates-based firms, especially in the real estate sector, have joined the list of global companies, targetting investments in India in hotels, malls, healthcare, housing, IT parks and integrated townships.
EmaarMGF Land, a joint venture between Emaar Properties PJSC of Dubai and MGF Developments of India, is planning to invest $3 billion (Rs 12,000 crore) in 10 locations across south India over the next few years.
Undeterred by the volatility on the Dalal street, realty major Emaar MGF on Wednesday said it would go ahead with its plan to enter the capital market for raising up to Rs 7,077 crore (Rs 70.77 bilion) through initial public offer.
Since India eased rules governing foreign investment in property in 2005, western private equity funds and, now increasingly, the cash-rich states of the United Arab Emirates across the Arabian Sea from India, have flocked to the country.
Dubai-based realty major Emaar is setting up a 100 per cent subsidiary in India, though it has an equal joint venture with Delhi-based MGF, a real estate developer and financier.
A Dubai government supported company has awarded a sub-contract to India-based Larsen and Toubro for constructing a 108 million Dirham convention centre in Hyderabad.
A sustained two-digit average rate of return on capital accrued by developers is indicative of India's "build" momentum
Abu Dhabi national carrier had bought 24 per cent stake in Jet Airways for $379 million in April.
A majority of big real estate developers in India today said they are insulated from the financial crisis in Dubai and it will not have any impact in the country's property market.
Widening its probe in the Rs 3,600 crore VVIP chopper deal, the ED has begun a trail of "cash" which is suspected to have been paid as alleged kickbacks.
Piramals are the largest investors in the Indian real estate sector after HDFC, with investments worth $3 billion already.
