New Delhi: A unit of the Dubai government’s property and infrastructure arm will team up with Delhi-based developer DLF Ltd to build two 20,000-acre townships in North and West India. The venture will need an initial investment of about $10 billion (Rs43,000 crore), making it one of the biggest foreign-investment deals in real estate.
A DLF press release said both companies have agreed to a 50-50 partnership. Limitless, the Dubai unit, declined to comment. Limitless is the sister company of Nakheel, which is well known for its man-made islands that helped double Dubai’s shoreline.
Ankit Mital, who is responsible for Limitless’ India strategy and business development, said this was the company’s first announced deal in India and it plans to build other townships of at least 1,000 acres. Mital said two DLF-Limitless developments, one near Delhi and the other in south Maharashtra, will have a mixture of homes, shops, and offices. The projects will start this year and the first phase will be completed in three years, the release said. Mital wouldn’t say if the land has been acquired for the projects.
Rishi Sahai, board director, Indusview Advisors, a real-estate investment bank, was cautious about the deal, saying big announcements don’t always translate into actual construction on the ground. But he said the projects will benefit both DLF and Limitless. He said DLF might have agreed to work with Limitless because the Dubai company would be able to market the projects in its home country, where many Indians live. “They can use them as a glorified marketing agency,” Sahai said.
Separately, the Hinduja Group has said it plans to invest Rs1,200 crore in a real-estate development, including commercial properties and resorts in Dubai. The company said it had bought land in the Waterfront Project of Nakheel. Located in Jebel Ali, Dubai Waterfront is the world’s largest waterfront development.