Emaar Properties to terminate alliance with Indian partner MGF
Emaar Properties PJSC, a UAE-based company has decided to terminate a 10-year old partnership with Indian partner MGF Development, suggests an DNAIndia report.
The report says that the company has met earlier in the week and might make a formal announcement on Wednesday afternoon.
The partners are said to be in discussion about termination of the joint venture since almost a year. It has taken time as it was a complicated process involving projects and large land parcels of about 7,500 acres across the country, the report says.
The realty major entered India a decade ago with an investment of Rs 7,500 crore as a joint venture, Emaar MGF Land Ltd.
The ET report suggests that the key problem of the termination was that head of MGF Development, Shravan Gupta’s decision to move out of the country. Gupta is not keen on participating in the management of the venture.
There are no further details of the separation. The report says that chances of any cross holdings of ownership in the land or projects after the split are unlikely, barring a few exceptions.
Emaar Properties is likely to get a bigger share from the separation. The company owns a 48.86% stake in the joint venture in addition to loans and guarantees of about $500 million.