Thursday 26 May 2011

Emaar MGF to sell apartment project to US co for R1,200 cr

In the first real estate bulk deal in the National Capital Region, New Delhi-based realty major Emaar MGF is learnt to be in an advanced stage of selling its under-construction 550-flat residential complex Palm Drive in Gurgaon for Rs 1,000-1,200 crore to New York-based marquee realtor Tishman Speyer.

For the beleaguered Emaar MGF, a joint-venture between Dubai-based Emaar and Shravan Gupta-led MGF Land Ltd, this is a fire sale, as the company is unable to sell the flats by itself owing to the current slump in the housing market and desperrately needs money to retire part of its R4,689-crore debt and improve its cash flows.

When contacted, Emaar MGF CFO and executive president Sanjeev Saddy said: “Talks with Tishman Speyer are in preliminary stages. It’s a good move for us if we realise the optimum value of the flats. But nothing concrete has materialised as yet.” Tishman declined to comment on the development. The American realtor currently manages the iconic Rockefeller Center building in Manhattan. Tishman currently has three properties in India, one in Chennai and two in Hyderabad.

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