Keppel Land in joint venture to develop township in India
It will acquire 49% stake in joint venture with Rustomjee Group
Keppel Land, the property arm of Keppel Corp, has entered into a joint venture with India's Rustomjee Group to develop a 51.4ha integrated township in Thane, a district within the Mumbai Metropolitan Region in India.
Keppel said this is the first such collaboration between a Singapore developer and an Indian counterpart for a township in a region considered to be among the fastest-growing in India.
Since its launch in 2006, the Urbania township has housed 2,700 residential units amid comprehensive amenities, said Keppel Corp in a media release yesterday.
Keppel Land will acquire a 49 per cent stake in the joint venture company, Kapstone Constructions, through a wholly owned subsidiary, for 4.1 billion rupees (S$78.5 million).
Upon completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop 7,400 homes and retail units with a total gross floor area of approximately five million sq ft.
The development of the first phase under the joint venture will comprise approximately 460 residential units.
Mr Ho Kiam Kheong, president (India) at Keppel Land, said: "Our collaboration with the Rustomjee Group for this integrated township is in line with Keppel Land's strategy to strengthen our presence in high-growth areas such as the Mumbai Metropolitan Region.
"The partnership has landed on a rare opportunity of a development of such scale in Mumbai, which is experiencing rapid demand for quality homes.
"We will leverage the Rustomjee Group's extensive network and deep knowledge of the local property market, as well as Keppel Land's international experience and strong execution capabilities to develop a highly liveable and vibrant township."
The Rustomjee Group has a property portfolio of 16.6 million sq ft of completed projects, 10.9 million sq ft of ongoing development and 22 million sq ft of planned development across the Mumbai Metropolitan Region.
These include two township developments in Thane and Virar, as well as large residential developments and educational institutions spread across Mumbai City.
Keppel said it expects completion of its latest acquisition around the first quarter of next year.The transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corp for the current financial year.
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