Tishman to buy land in Gurgaon project from Emaar MGF for Rs 220 cr

NEW DELHI: Delhi-based builder Emaar MGF is selling five acres in its 104-acre Emerald Hills Township in Gurgaon to global property developer Tishman Speyer for $50 million ( Rs 220 crore). Tishman is best known for its iconic Rockefeller Center building in Manhattan.

The 5-acre plot already has all approvals required for a 600,000 sq ft commercial office building. The deal is in its final stages of closure, said a person familiar with the development. In response to an email query, Emaar MGF said, "No comments."

Emaar MGF has tried to raise money from the market and has filed for an IPO thrice already, in 2008, 2009 and in 2010. In 2008, it withdrew the IPO because of poor response and its third attempt in September 2010 has not got a SEBI nod yet, primarily because of its involvement in alleged irregularities in developing the Commonwealth Games Village, which has come under the scanner.

Despite its current troubles, Emaar-MGF has managed to scale down its debt from Rs 6,000 crore a year and a half back to Rs 4,500 crore today. Sources, who did not want to be named, said that the company has been trying to raise money by selling small land parcels and properties to finance its projects as well as reduce debt.