In order to develop property market in South India, Emaar MGF land Ltd, a joint venture between Emaar Properties PJSC of Dubai and MGF Developments Ltd of India, has decided to invest $3 billion by the next 5-7 years.

Out of the proposed $3 billion investment, Emaar MGF plans to spend $1.4 billion on a leisure and residential township in Hyderabad.
The project, covering up over 531 acres, will be situated near Hyderabad’s IT and financial corridor district near Gachibowli. The township will have a golf course spread over 192 acres, luxury residences, large formal retail facility, luxury and boutique hotels, and an IT SEZ.

Around $1.6 billion would be invested on residential, commercial and retail space, IT SEZs and hospitality ventures in nine other locations in south India including Chennai, Coimbatore, Cochin, Bangalore, Mangalore, Mysore and Tirupathi.
Emaar MGF has a land bank of 13,000 acre in 26 cities and aims to cover up 40 cities within the next 4-5 years.

The company is also planning to tap the Indian capital markets sometime in the next 18-24 months.

Emaar MGF Land Ltd, which postponed its Rs 7,000-crore IPO plans in February because of tepid reaction from the markets, will revisit the offer in 18-24 months.

Mr. William R Rattazzi, Company’s Chief executive stated that the IPO withdrawal proved to be a wise decision in hindsight.

“The market has not returned the value that it deserves.” he added.

Mr. William also said that the size and pricing of the next issue would rely on the market conditions at that time.