JP Morgan & Banks Expand Business

March 7, 2007	(Be the first to rate this story!)  Loading ...
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It’s a buying spree these days for business houses. JP Morgan and a handful of other banks have bought around 1.5 percent stake in Delhi-based real estate company, Emaar MGF, for a whopping $100 million.

According to sources, JP Morgan has invested around $50 million for the deal, which was singed in the month of November but was not made public. The remaining amount for the stake came from other investment bankers.

This is the second time that some companies have bought stakes in Emaar-MGF. Earlier, Citigroup in collaboration with New York Life India had picked up 2-3 percent stake in the 50-50 joint venture for a similar amount.

This joint venture between Dubai-based Emaar Properties and Delhi-based MGF has brought FDI worth $1 billion in the last one and a half year into the country.

The Emaar-MGF joint venture is into residential, commercial & retail, hospitality, healthcare, education and SEZ business.

As per industry estimates in 2006, around $3 billion worth of FDI and private equity deals took place in the real estate companies in India.

According to analysts, the coming months will be more fruitful for investment bankers and feel that real estate companies may have a chance to tap the private equity in a big way considering the choppiness in the market and credit squeeze imposed by RBI on real estate.

News Published Under:   Real Estate Developers |

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