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Realty firm Embassy group today said it would form a joint venture with the US-based Taurus Investment Holdings to develop commercial projects, including an SEZ, in Kerala at an investment of about ₹900 crore.
Taurus and Bengaluru-based Embassy will develop a 10-acre SEZ project at Thiruvananthpuram for 1.4 million sq ft of office space through a joint venture firm Winterfell Realty.
Taurus will have 51 per cent stake in the JV while Embassy will hold 49 per cent, although the economic interest will be equal between the two partners.
In another 10 acres of non-SEZ land, Embassy and Taurus will form separate JV to develop 0.9 million sq ft of office space in the second phase. Taurus will independently develop 1.2 million sq ft of retail space and a hotel on this land.
Another JV
“We are entering into a JV with Taurus Investment to develop 2.3 million sq ft of office space in two phases. This will be our first project in Kerala,” Embassy group CMD Jitu Virwani told PTI.
He said the total project cost would be about ₹850-900 crore, which will be infused in the form of equity and debt by the partners.
The JV expects to sign a lease agreement with Kerala government by November for the SEZ project and start construction work early next year.
Embassy through its entity Embassy Property Development has entered into an agreement with Taurus Investment Holdings, a real estate private equity investment and development firm, to form the JV ‘Winterfell Realty’ to develop ‘Embassy Taurus World Technology Centre’ SEZ project.
This partnership strengthens Embassy’s commercial office space portfolio and development of SEZs in key strategic locations, Virwani said.
Land lease
The total size of the project is 20 acres comprising 3.5 million sq ft of developable area. The land will be on lease from the state government for a period of 90 years, with a renewal option of another 90 years.
Virwani said the SEZ development has been envisaged as an important strategic tool to expedite the growth of global trade and services and the company is committed to be a part of this significant growth through exclusive SEZ projects across locations.
Embassy and Blackstone are planning to launch Real Estate Investment Trust (REIT) to monetise its office assets. The group is also into residential and hotel business.
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