Business
New India Joint Venture
New India Joint Venture.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n RNS Number : 9873B Plaza Centers N.V. 26 August 2008 \n \n26 August 2008\n\n\nPLAZA SIGNS JOINT VENTURE TO DEVELOP MIXED USE PROJECTS IN INDIA\n\n-Three mega seed developments already identified -\n\nPlaza Centers N.V. ('Plaza' or the 'Company'), a leading emerging markets property developer, today announces that it has signed a joint venture agreement with Elbit Imaging Ltd. ('Elbit'), of which Plaza is an indirect subsidiary, for the development of major mixed use projects in India. Under this agreement Plaza will acquire a 47.5% stake in Elbit India Real Estate Holding Limited (the 'joint venture' or the 'JV'), which already owns stakes of between 50% and 80% in three mixed use projects in India, in conjunction with local Indian partners. The JV's voting rights will be split 50:50 between Elbit and Plaza.\n\nPlaza will pay a nominal amount to the JV for a 47.5% shareholding, plus circa US$126 million to Elbit reflecting 50% of all loans granted to date to the JV by Elbit. These loans were used to purchase the plot of the lands and associated costs for the three seed JV projects. Plaza is not paying any premium for its holdings in any of the three projects. The acquisition of the locations is done in stages, with an approximate end cost of US$410 million for the three locations (the JV's share).\n\nThe three projects, located in the cities of Bangalore, Chennai and Kochi will have a total combined development budget of approximately US$3.4 billion (of which the JV partners will responsible for circa US$1.9 billion) and a built-up area in excess of 3.8 million sqm (excluding parking spaces). As these projects have large scale residential elements, the JV will pre-sell units in advance of construction to fund the majority of the construction costs as acquirers in India typically pay high levels of deposits to secure their properties. \n\nDetails of the three JV projects are as follows: \n\n\n\nBangalore: This mixed-use project, 50% owned by the JV and 50% owned by a prominent local developer, is located on the eastern side of Bangalore, India's fifth largest city with a popu...