Plaza Centers Signed JV Israel-based Elbit Imaging

Emerging markets property developer Plaza Centers NV said it has signed a joint venture contract with Israel-based Elbit Imaging for developing three projects in India.
The three projects are in the three Indian cities Bangalore, Chennai and Kochi and would have a combined development budget of about 3.4 billion dollars, Plaza said in a regulatory filing to the London Stock Exchange.
As stated by the contract, Plaza would acquire a 47% stake in Elbit India Real Estate Holding Ltd, which already owns around 50-80% stake in the three projects along with local Indian partners.
Three projects, which are in the stages of planning and design, are likely to start in 2009.
“Through this joint venture, Elbit and Plaza are set to take advantage of India’s flourishing economy and thereby mark a new era of growth for Plaza,” company CEO Ran Shtarkman said.
He also added that there is a huge demand in India for high-end residential accommodation, five and four star hotels and western style retail complexes.
“We look forward to meeting some of this demand with the delivery of these large projects, and we will continue to look for parallel opportunities in the future,” Ran Shtarkman said.
The joint venture’s voting rights would be split 50:50 between Elbit and Plaza. Further, Plaza would pay a small amount to the joint venture for a stake.
According to the filing, the JV would also look for development opportunities for large scale mixed use projects in India, predominantly led by either residential or office schemes.
“In addition, Plaza will continue to develop, manage and look for new opportunities for shopping centers based projects in India independently of the JV,” it added.

This entry was written by admin, posted on August 27, 2008 at 2:58 am, filed under Real Estate News and tagged , , , , , , , , , , , , . Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.

One Comment

  1. vikas bamotra
    Posted September 4, 2008 at 3:42 am | Permalink

    Investing in the Indian real estate sector continues to grow, however the pace may be slowing just a little. Foreign developers as well as private equity funds remain bullish, long-term, on India’s property market.

    Not only is investment flowing into the metro cities, but attractive real-estate deals are also being negotiated and signed in ’second-tier’ cities such as Indore, Jaipur and Cochin.

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