Vol. XXI, No. 185` [ Business World Online ]
Tuesday, April 22, 2008 | MANILA, PHILIPPINES
AN AFFILIATE of Ayala Land, Inc. has entered a deal with India’s Mahindra Group to jointly build an exclusive residential community in Chennai, India.
Mahindra will own 51% of the joint venture and the remainder will be owned by an investment vehicle controlled by ARCH Capital Asian Partners LP, an affiliate of Ayala Land, the Philippines’ biggest property developer.
Neither company said how much they would invest in the tie-up, which will be called Mahindra Residential Developers Ltd.
"This joint venture through ARCH Capital represents Ayala’s first major foray into the Indian real estate market," Fernando Zobel de Ayala, chairman of Ayala Land, said in a statement yesterday.
"The Indian market is very attractive and we see many opportunities for joint development and partnerships in the future, not only in residential real estate development but even in high-growth areas such as business process outsourcing," he added.
Ayala Land’s entry into the Indian property market comes amid fears of a possible halt to a local real estate boom, as overseas demand for Philippine apartments and houses is hit by the slowdown in the US.
The joint venture with Mahindra will involve 750 residential units being built on around 55 acres in the Mahindra World City in Chennai, the largest city in south India.
Ayala Land — controlled by the Philippines’ richest family, the Spanish-Filipino Zobel de Ayalas — builds upscale malls, hotels, high-rise offices and residential condominiums and villages in the Philippines.
Yesterday, its shares finished 2.3% lower at P10.5, worse than the general index, which was 0.9% weaker. — Reuters
_______________________________________________________________________
