The Hindu Business Line : Indian realty firms make beeline for overseas projects

Looking abroad
Piramal Sunteck Realty is to partner Oman’s W.J. Towell Group for developing high-end mixed-use properties in Muscat
Sunil Mantri Realty has tied up with MSC Cyberport Sdn. Bhd, Malaysia to develop the Bandar MSC Cyberport in Kulai, Johor
Hiranandani Group is currently building a residential tower ‘23 Marina’ in Dubai in association with Eta Star Properties

S. Shanker

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Mumbai, June 17 Last November, India seemed a one-stop destination for global realty players and foreign institutional investors eager to be part of the country’s growth story.

Now, with oil hitting $130-plus and a softening of the real estate market here, it appears to be the turn of the Indian realty market to make a crossover.

Mumbai-based companies such as Piramal Sunteck Realty, Ajmera Group, Mantri Realty and BSEL Infrastructure are all set to draft overseas projects on their boards here. Piramal Sunteck Realty is to partner Oman’s business major W.J. Towell Group for developing high-end mixed-use properties in Muscat.

Denying that the softening of the Indian real estate market had influenced his decision to go overseas, Mr Kamal Khetan, Managing Director, Piramal Sunteck, said the days of developers restricting themselves to home turf were over. With oil crossing $130-plus a barrel, a huge opportunity awaits those willing to work in countries such as Oman. Suntech is to invest about Rs 200 crore in the joint venture.

Cybercity

Mumbai-based Sunil Mantri Realty has tied up with MSC Cyberport Sdn. Bhd, Malaysia to collaborate in the development of Bandar MSC Cyberport in Kulai, Johor.

Mantri Realty will invest $100 million in the venture to be developed in three phases over eight years at a cost of $425 million.

The Johor Barul state government through a subsidiary will hold 30 per cent equity and the balance is to be jointly held by Sunil Mantri and MSC Cyberport Sdn.Bhd.

Basically, infrastructure and building permission are no hassles there, unlike Mumbai, where one has to obtain 62 clearances for a project.

We had been on the look out for opportunities overseas and this came to us by invitation, said Mr Sunil Mantri, Chairman, Mantri Realty, adding that such projects would help developers accord greater focus on construction, marketing and finance, rather than on clearances and legal tangles associated with land transactions.

90-storey project

Established players such as Hiranandani Group is currently building a residential tower ‘23 Marina’ in Dubai in association with Eta Star Properties.

Hircon International recently launched the 90-storeyed project.

The residential high-end super luxury project entails bringing an upscale lifestyle with 26 stories of duplex apartments, each with a private plunge pool, elevator and ocean view.

Mr Niranjan Hiranandani, Managing Director, Hiranandani Group, pointing to the spiralling oil prices and the potential Dubai offered, said a softening market here meant little to seasoned majors.

The Ajmera Group, said to possess the third largest land bank in Mumbai, has formed a joint venture with Mayfair Housing to construct a 7.31 lakh sqft high-end residential and commercial tower in Bahrain. Land for the Rs 600-crore venture has been purchased for Rs 150 crore.

Iskandar metropolis

BSEL Infrastructure Realty Ltd has signed a memorandum of understanding with the Government of Malaysia’s statutory body Iskandar Regional Development Authority for developing the Iskandar metropolis. BSEL Infra has committed an investment of Rs 18,000 crore, to be spread over 12 years.

Mr Dharmendra Raichura, Managing Director, BSEL Infra, said the first phase funding would be through internal accruals and bank assistance.

The 70 million sq ft project will be built in three phases with 10 million sq ft slated in phase I. Of the five economic zones to be developed, BSEL has pledged to invest in two zones — Financial District and Nusajaya.

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