CapitaLand all set to form 50:50 JV with DS Kulkarni
DSKDL is currently developing 250 acres multi-services SEZ in its privately owned land in Pune.
By Rajesh Unnikrishnan, TNN |
MUMBAI: In one of the largest real estate deals in India, CapitaLand — South-East Asia’s largest Real Estate Investment Trust (REIT) — is all set to form a 50:50 JV with the Pune-based property firm, DS Kulkarni Developers (DSKDL) to develop the latter’s 60 acres land. CapitaLand will invest close to Rs 700 crore to set up residential cum IT/ITES and retail complex.
DSKDL is currently developing 250 acres multi-services SEZ in its privately owned land in Pune.
Sources close to the development said that out of the 250 acres, the JV will be develop 60 acres - 30 acres as IT /ITEs processing unit while the balance 30 acres as a residential and retail unit. When contacted D.S Kulkarni, chairman and managing director of DSKDL, declined to comment on the deal. International property consultancy firm DTZ is advising DSKD on the deal.
The DSKDL-CapitaLand JV will be the third deal for the Singapore firm in the local market. CapitaLand had formed a JV with Mumbai based developer Runwal group while it has tied up with Pantaloon Retail to manage a portfolio of 50 malls across 30 Indian cities over the next 2 to 3 years. Under the plan, CapitaLand owned REIT would purchase 30 acres land from DSKDL and develop the same as a commercial property.
The real estate arm of CapitaLand and DSKDL together will develop the project.
"The REIT shall pay for the premises to DSKDL & CapitalLand JV at an agreed valuation derived by capitalising the market rentals," sources said.
The balance 30 acres of is to be jointly developed by DSKDL & CapitaLand as a 50:50 JV. DSKDL shall contribute its land in the form of equity in the JV company.
For developing the remaining land in the 250 acrs of SEZ, discussions are underway with other developers and financial investors based out of Israel, US and Europe, sources said.
Currently, DSKDL is developing 34.5 million sq.ft of land in Mumbai and Pune markets. The company has also decided
to merge its group firm Oyster Promoters & Developers with DSKDL.
DSKDL is currently developing 250 acres multi-services SEZ in its privately owned land in Pune.
Sources close to the development said that out of the 250 acres, the JV will be develop 60 acres - 30 acres as IT /ITEs processing unit while the balance 30 acres as a residential and retail unit. When contacted D.S Kulkarni, chairman and managing director of DSKDL, declined to comment on the deal. International property consultancy firm DTZ is advising DSKD on the deal.
The DSKDL-CapitaLand JV will be the third deal for the Singapore firm in the local market. CapitaLand had formed a JV with Mumbai based developer Runwal group while it has tied up with Pantaloon Retail to manage a portfolio of 50 malls across 30 Indian cities over the next 2 to 3 years. Under the plan, CapitaLand owned REIT would purchase 30 acres land from DSKDL and develop the same as a commercial property.
The real estate arm of CapitaLand and DSKDL together will develop the project.
"The REIT shall pay for the premises to DSKDL & CapitalLand JV at an agreed valuation derived by capitalising the market rentals," sources said.
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The balance 30 acres of is to be jointly developed by DSKDL & CapitaLand as a 50:50 JV. DSKDL shall contribute its land in the form of equity in the JV company.
For developing the remaining land in the 250 acrs of SEZ, discussions are underway with other developers and financial investors based out of Israel, US and Europe, sources said.
Currently, DSKDL is developing 34.5 million sq.ft of land in Mumbai and Pune markets. The company has also decided
to merge its group firm Oyster Promoters & Developers with DSKDL.
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Last week, Singapore minister of state for trade and industry S.Iswaran said that Singapore real estate majors are keen to participate in the Indian property sector. ‘Singapore firms like Keppel Land and CapitaLand have already expanded there presence in India. Ascendas, another Singapore REIT has also launched Ascendas India Trust,” the minster had said.Start a SIP with as low as ₹500 with ET Money App!
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