Parsvnath, Turkish firm in pact for airport development

Realty major Parsvnath Developers signs a MoU with TAV Holding to foray into airport development in the country, reports Varun Soni.

Realty major Parsvnath Developers has signed a memorandum of understanding (MoU) with TAV Holding, a leading airport operator from Turkey and IL&FS Transport Network, subsidiary of Infrastructure Leasing & Financial Services, to foray into the airport development sector in the country. A special purpose vehicle (SPV) would be set up for the venture, the modalities of which are being worked out.

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“The joint venture has been formed to enter the groing area of airport development in India. Of the 35 airports up for development, we are more interested in taking over the modernisation of Amritsar airport and the development of the proposed Greater Noida Greenfield airport when it is sanctioned,” said Pradeep Jain, chairman, Parsvnath Developers.

The government has plans to modernise 35 airports within the next three years in India. Airport development is likely to be be carried out as joint ventures with private companies that would hold 74 per cent stakes and the remainder would be held by the Airports Authority of India (AAI). The AAI currently owns and operates these airports.

TAV was founded as a joint venture between Tepe and Akfen groups in 1997 after the build-operate-transfer tender for Istanbul Ataturk Airport International Terminal was awarded. Apart from the Istanbul airport, TAV Airports Holding has built airports in Izmir, Ankara, Georgian capital Tbilisi and Tunisia. Leading investment bank Goldman Sachs, fund manager Austrian Babcock & Brown, the Islamic Development Bank (IDB), Infrastructure Fund (EMP) and Global Investment House (GIH) are strategic partners of TAV Airports Holding.