Keppel Land, the property arm of Singapore-based conglomerate Keppel Corporation, has entered into a joint venture with India’s Rustomjee Group to develop an integrated township in Mumbai suburb of Thane.
Keppel Land will be acquiring a 49 percent stake in the joint venture company, Kapstone Constructions Private Limited, for about ₹4,091 million (approximately Singapore dollars 78.2 million), while Keystone Realtors Private Limited (KRPL), which operates under the name Rustomjee Group, will hold the remaining 51 percent.
The project in Urbania Township is spread across 51.4-hectare in Thane district located in Mumbai Metropolitan Region (MMR).
This is the first collaboration between a developer from Singapore and an Indian real estate player for a township in the Mumbai Metropolitan Region.
Launched in the year 2006, the Urbania Township has housed 2,700 residential units amid comprehensive amenities.
Boman Irani, chairman of Rustomjee Group, said the joint venture will be a “win-win partnership. He said the tie-up with Keppel is the beginning of two large developers coming together to build a strong partnership and his company is looking forward to “great growth together”.
“In our endeavour to continue serving the growing housing and commercial developments of the Mumbai Metropolitan Region, we are pleased to partner with Keppel Land, an established premier developer from Singapore with a legacy of over a hundred years and with an international experience in key Asian markets,” Irani said in a statement.
{{/usCountry}}“In our endeavour to continue serving the growing housing and commercial developments of the Mumbai Metropolitan Region, we are pleased to partner with Keppel Land, an established premier developer from Singapore with a legacy of over a hundred years and with an international experience in key Asian markets,” Irani said in a statement.
{{/usCountry}}Keppel Land and Rustomjee will together develop about 7,400 homes and retail units with a total gross floor area of around 5 million sq ft.
The development cost for the first phase under the joint venture, which will comprise nearly 460 residential units, is expected to be around ₹4,016 million (approximately Singapore dollar 76.8 million).
Keppel Land said completion of the acquisition is subject to the satisfaction of certain conditions precedent and is expected to take place around the first quarter of 2020.
Keppel Land’s President (India), Ho Kiam Kheong, said the partnership with Rustomjee Group is in line with his company’s strategy to strengthen presence in high-growth areas such as the Mumbai Metropolitan Region.
“The partnership has landed on a rare opportunity of a development of such scale in Mumbai, which is experiencing rapid demand for quality homes,” he added.
Kheong said the joint venture will leverage the extensive network and deep knowledge of the local property market of Rustomjee Group as well as international experience of Keppel Land.