Mumbai-based Rs 830 crore realty firm Zoom Developers has signed a memorandum of understanding with Yoo Holdings, a $10 billion global property development company, to form a special purpose vehicle to execute medium and large-scale real estate projects on a national as well as international level.
Yoo Holdings is a design-focussed property development firm founded by international design guru Philippe Starck and property developer John Hitchcox based out of Canada, USA and Israel.
The tie-up for the first time marks the entry of French designer Philippe Patrick Starck into India. Considered to be the most celebrated designer in the world, the creative genius of Philippe Starck has earned him a bonafide rock star status. John Hitchcox, on the other hand, is credited with establishing New York-style loft-living in London.
As per the tie-up, Yoo will hold 25 per cent equity participation in each project that the joint venture company executes, with the remaining 75 per cent being held by Zoom. While the investment for the special purpose vehicle is being worked out, its probable name would be Zoom Yoo India Pvt. Ltd.
"The tie-up will bring in state-of-the-art development in real estate with special emphasis on designing, marketing and branding. While Yoo will take care of the designing and marketing of a project, Zoom will develop it," said Rumneek Bawa, CEO and president, Zoom Developers.
The special purpose vehicle is looking at developing hi-tech townships in and around Lucknow as well as developing Habitat Centres across the country. Zoom holds a substantial amount of real estate in Mumbai, Bangalore, Indore and Kolkata.
However, with Zoom developing projects in The Phillippines and China, the services of Yoo will also be used in developing them, said Rameet Trehan, Head, Business, Development, Zoom Developers. "The deal is reciprocal. Since Yoo is big in Europe and North America, there will be some projects where we might play the role of a developer, marking our entry into the global real estate arena," he said.