AIG Forays into Indian Real Estate Sector

March 12, 2007	(Be the first to rate this story!)  Loading ...
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Now, even the global financial firm, American International Group (AIG), too succumbed to the tempting Indian real estate business, as it buys an 11-acre plot in Chennai along with Bangalore-based realty developer RMZ Corporation for approximately Rs 300 crore.

The US-based firm, American International Group (AIG) in partnership with RMZ Corporation, has bought this piece of land from Hindustan Teleprinters Ltd (HTL), a subsidiary of Himachal Futuristic Communications Ltd (HFCL).

According to sources, AIG-RMZ paid Rs 27.1 crore per acre for the plot, which in itself is a benchmark southern city not only that, it could also be the largest real estate deal for the Chennai so far. The deal fetched around 23% premium to HFCL’s reserve price of Rs 22 crore per acre.

The plot was auctioned on the net and around eight bidders had shown interest for the deal including some other international real estate funds too.

AIG had already made its intention clear that it was planning to enter India’s real estate sector in a big way and it also said that it was in mood to take the venture fund route, nor was willing to any other finance real estate developers.

According to industry sources, American International Group (AIG) will be involved in mega projects in real estate sector of India.

Where as RMZ Corporation plans to develop 60 million square feet of real estate over the next five years. The company is considering joining hands with other firm and is currently holding talks with various overseas firms.

News Published Under:   Real Estate India |

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