NEW DELHI, Apr 13: Dubai-based realty firm Emaar Properties and India’s MGF group are likely to end a decade old joint venture with Emaar MGF Land Ltd announcing demerger of the business for future growth and expansion.
Emaar Properties, developer of the world’s tallest tower Burj Khalifa, entered India in 2005 as a joint venture with MGF group. It has invested about Rs 8,500 crore in the Indian real estate market so far.
In a filing to BSE today, Emaar MGF Land informed that the board has decided to take steps for re-organisation of the company through a ‘Scheme of Demerger’.
“…In order to lend greater focus to the operations of the company’s businesses & projects and for the purpose of capturing the potential for further growth and expansion, the Board of Directors of the company at its meeting held on April 11, 2016, have resolved…To take steps for re-organisation of the company through a Scheme of Demerger to be filed in the Court…,” Emaar MGF said in the filing.
The board has authorised the company to execute necessary agreements and documents in respect thereof.
Sources in the company said Emaar MGF would be demerged into the two separate entities with both the partners deciding to part ways.
Emaar MGF spokesperson declined to comment on this issue.
Both Emaar Properties and MGF group have about 49 per cent stake each in the joint venture firm.
Emaar MGF Land Ltd, headquartered in New Delhi, started operations in India in mid-2005. It is engaged in residential, commercial, retail and hospitality projects across India in cities like Gurgaon, Chennai, Hyderabad and Indore among others. The JV company has a land bank of about 8,000 acres.
Emaar MGF constructed the Commonwealth Village in Delhi. (PTI)
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