Emaar MGF, a joint venture between the Dubai-based Emaar Properties and Delhi’s MGF Development, is close to acquiring an 800-acre plot in Pune for around Rs1,400 crore from a local developer as part of its expansion plans in India.
“We have bought the 800 acres of land from a group of farmers and it took us almost two years to accumulate it,” said Suryakant Kakade, chairman of the Pune-based developing firm Kakade British Realty Pvt. Ltd, from which Emaar MGF hopes to acquire the land.
Emaar MGF plans to acquire the land in phases and will first purchase 500 acres and later add 300 acres at a price of around Rs1.75 crore per acre, said an official familiar with the development. The land will be used for setting up an integrated township consisting of hotels, malls, hospitals, educational institutes, residential complexes and a golf course.
“Pune is a significant target destination for the company and we have plans on establishing our presence there,” an MGF spokesperson said. “We are in the process of acquiring land in Pune and are at an advanced stage of discussions with a few parties.” She said it was too premature to comment on any other details.
So far, Emaar MGF has announced a 3,000-acre township at Mohali (Punjab), one of the several locations in the state where it is developing a total of 5,000 acres. It is planning to more than double its land holdings to 25,000 acres by end-2008 to cash in on the demand for developed residential and commercial space, driven by a booming economy and rising middle-class incomes. The land bank will be used projects ranging from residential, commercial, infrastructure, hospitality and retail to special economic zones, said the spokeswoman.
The company is also evaluating properties in other cities, including Mumbai, Bangalore and Chennai. Emaar, in which the DubaiEmir-controlled Dubai Holding recently increased its stake, has already invested about $1 billion (Rs4,300 crore) in the JV.
Emaar MGF plans to dilute around 10% equity in an initial public offering in 12 to 18 months to raise cash for its expansion plans.