MANILA, April 21 (Reuters) - The Philippines' biggest property developer Ayala Land (ALI.PS: Quote, Profile, Research) said on Monday an affiliate would form a joint venture with India's Mahindra Group to build an exclusive residential development in Chennai.
Mahindra will own 51 percent of the joint venture and the remainder will be owned by an investment vehicle controlled by ARCH Capital, an affiliate of Ayala Land.
Neither company said how much they would invest in the tie-up, which will be called Mahindra Residential Developers Ltd.
"This joint venture through ARCH Capital represents Ayala's first major foray into the Indian real estate market," said Fernando Zobel de Ayala, chairman of Ayala Land, in a statement.
"The Indian market is very attractive and we see many opportunities for joint development and partnerships in the future, not only in residential real estate development but even in high-growth areas such as business process outsourcing."
Ayala Land's entry into the Indian property market comes amid fears of a possible halt to a local real estate boom, as overseas demand for Philippine apartments and houses is hit by the slowdown in the United States.
The joint venture with Mahindra will involve 750 residential units being built on around 55 acres in the Mahindra World City in Chennai, the largest city in south India.
Ayala Land -- controlled by the Philippines' richest family, the Spanish-Filipino Zobel de Ayalas -- builds upscale malls, hotels, high-rise offices and residential condominiums and villages in the Philippines.
Its shares finished 2.3 percent down on Monday at 10.5 pesos, underperforming the general index which was 0.9 percent weaker. (Reporting by Carmel Crimmins; Editing by David Holmes)
Manila's Ayala enters Indian real estate market | Reuters
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