DLF, Nakheel Join Hands for Two Township Projects Worth $10 bn

March 21, 2007	(Be the first to rate this story!)  Loading ...
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Delhi based DLF Group has joined hands with UAE-based real estate firm Nakheel for two mega township projects which will see the firms pumping in a mammoth $10 billion in India. These ventures also mark the entry of Nakheel into Indian real estate.

A highly placed source said that, out of the $10 billion investment that the firms are planning to spend, 40 percent will go on buying the land. However, DLF has already acquired 70 percent of land.

The 50:50 joint venture’s projects will cover a total area of 40,000 acres near Gurgaon, Mumbai and in Pune.

The firms are expected kick-start the construction work for these projects this year and the first phase of the construction work will take at least three years to finish.

DLF will be raising capital through debt, equity and internal accruals.

The Dubai-based Nakheel’s, which has to its credit renowned projects like The Palms, Dubai Waterfront and The World, is presently working on various other 17 projects that amount to more than $30 billion.

This joint venture of Nakheel and DLF is crucial for both the firms. Nakheel’s has a stiff competition back in Dubai in residential sector from Emaar Properties, which has a 50:50 joint venture with an Indian real estate major MGF.

And, this joint venture of Emaar-MGF has been in competition with DLF in Gurgaon, but with the formation of recent JV between DLF-Nakheel, DLF too has got some advantage.

Meanwhile, DLF has also announced many other joint ventures in the last one year or so.

Some weeks ago, it declared its plans to enter into the life insurance segment with a joint venture with Prudential Financial Inc of the US.

News Published Under:   Real Estate Developers |

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