UK's Plaza to develop Israel co Elbit's realty projects in India

MUMBAI/LONDON: Israeli real estate developer Elbit Imaging (EI) has signed a joint venture agreement with the UK property firm Plaza Centres NV, a leading emerging markets property firm, to develop the former���s three mixed-use real estate projects in India. Plaza has real estate operations in central and eastern Europe and in India.

Under this agreement, Plaza will acquire from EI a 47.5% stake in Elbit India Real Estate Holdings, a JV owned by the Israeli firm in India. Elbit India Real Estate holds equity between 50% and 80% in three mixed-use projects in India, in conjunction with local Indian partners. EI and Plaza shall have equal voting rights in the JV company, EI informed to the Tel Aviv stock exchange.

The UK firm will pay a nominal amount to the JV for the 47.5% shareholding, plus $126 million to EI reflecting 50% of all loans and financing granted to date to the JV by EI. The loans and financing were used to purchase the plots of land and for other associated costs related to the JV���s real estate activities.

The three projects ��� located in Bangalore, Chennai and Cochin ��� will have a total combined development budget of around $3.4 billion and a built-up area in excess of 3.8 million sqm. (excluding parking spaces).

In Bangalore, Elbit India Real Estate owns 50% equity holding in a mixed-use project with a prominent local developer. The project is located on the eastern side of Bangalore. With a total built area of over 2.1 million sq m, the project will comprise luxury residential units (villas and multi-level), office complexes, a major retail facility, hotel complex, hospital, golf course, club houses and ancillary amenity facilities.

In Chennai, the Israeli firm owns a mixed-use development, 80% is owned by the JV and 20% by a local developer, who is developing a high-quality residential units, a local retail facility and an office complex with a total built area of 1.1 million sqm. Similarly, in Cochin, Elbit has a 50:50 partnership with a prominent local developer for a high-end residential apartment buildings, office complexes, a hotel and serviced apartments complex, retail area and a marina.

The JV will also look for further development opportunities for large scale mixed-use projects, predominantly led by either residential, office or hotel schemes.