Another Big Deal in Real Estate Sector

February 8, 2007	(1 votes, average: 4 out of 5)  Loading ...
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RREEF, the real-estate investment arm of Deutsche Asset Management, is planning to invest over $200 million in a joint venture with realty major Emaar-MGF.

If the discussions turn out to be fruitful, it would be the biggest deal in the real estate in India. With a whopping amount of $125million investment in Mumbai based Oberoi Constructions; Morgan Stanley Real Estate Fund is known to have made the largest private equity transaction in property market till date. However, the amount of stake to be diluted by Emaar-MGF is not yet known as the transaction is likely to be a quasi-equity deal. As far as RREF is concerned, it will hold convertible debentures in the company.

EMAAR–MGF, has not finalized anything. The company aims at raising equity in the company and is currently in advanced stages of discussions with several real estate players, including RREF. The next few weeks will decide for the final answer as officials are continuing their due research and analysis.

RREF is looked upon as one of the major real estate investors in the world with over $65 million in assets under management. At present, it has seven separate funds around the world that make handsome investments in real estate sector and infrastructure. It offers the quality services in infrastructure management, fund management, property management, leasing, construction, research and development.

Emaar MGF Land Private Limited is India’s pioneering joint venture in real estate with projects being implemented on a pan-India basis across top 30 cities. Emaar MGF has brought in the largest Foreign Direct Investment (FDI) of over US$1 billion in the Indian real estate sector. In addition, the company is focusing on pan-India projects in residential, commercial, infrastructure and hospitality sectors in integrated master plans and special economic zones (SEZ).

News Published Under:   Real Estate India, Foreign Direct Investment in India, Real Estate Developers |

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