Emaar MGF to invest $3 bn, plans IPO again
Emaar MGF to invest $3 bn, plans IPO again
Hyderabad: Realty firm Emaar MGF Land Ltd, a venture between Dubai-based real estate company Emaar Properties PJSC and India’s MGF Developments Ltd, whose plans to raise money fell apart after it failed to get investors interested in an initial public offering earlier this year, plans to invest $3 billion in 10 locations in south India, said its chief executive officer, William R. Rattazzi.
“We will be executing each of these projects through separate special purpose vehicles (SPVs), where each SPV would explore funding options of equity and debt. There are several sources of debt and equity funding available, and we will also pump in funds from the income accrued from other existing projects," Rattazzi said.
The company abandoned its IPO after cutting its offer price twice and extending its IPO by three days in February this year, which failed to garner takers amid indications of a US recession and global credit crunch.
Of the proposed $3 billion investment, Emaar MGF plans to spend $1.4 billion (Rs 5,610 crore) on an integrated leisure and residential community project coming up over 531 acres at Gachibowli in Hyderabad. The project includes an 18-hole championship golf course spread over 192 acres, luxury residences, large formal retail facility, luxury and boutique hotels, and an IT special economic zone.
The company also plans to invest around $1.6 billion on residential, commercial and retail space, IT SEZs and hospitality ventures in nine other locations in south India that include Chennai, Coimbatore, Cochin, Bangalore, Mangalore, Mysore and Tirupathi.
Emaar MGF has already acquired around 1,500 acres in the South, while its total land in the country now stands at around 13,000 acres spread across 26 cities, said Rattazzi.
The company is also planning to tap the Indian capital markets sometime in the next 12-18 months , the chief executive said. Declining to size the IPO, he said, "The issue price and size of the issue will depend on the market conditions prevailing then."
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