Emaar MGF to invest $110 million on housing project in Gurgaon, India

Published: 11-Mar-2010

Real estate firm Emaar MGF will invest INR5000 million ($110 million) to build a mid-income housing project at Gurgaon in Haryana, India.

As per the sources, the company, which plans to launch its initial public offer to raise up to INR3, 8500 million ($845 million), would develop 1,250 units in the 29 acre-project located at Sector-77 in Gurgaon. The investment in the project 'Palm Hills' could be around INR5000 million ($110 million), excluding the cost of the land.

Emaar MGF is a joint venture between Dubai-based Emaar Properties and domestic firm MGF. It commenced its operations in India in 2005 and recently got approval from the SEBI for its maiden public offer.

Emaar MGF plans to utilize INR1, 9720 million ($433 million) for part re-payment of debt of over INR5, 8000 million ($1.2 billion). The company would use INR8200 million ($180 million) for redemption of certain redeemable preference shares and will invest INR2768 million ($61 million) in paying development and license renewal charges.

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