Wednesday, December 5, 2007

Rakindo to spend $5b in India

Ras Al Khaimah’s Rakeen Development has tied up with the Trimex Group of India to form a company called Rakindo, which will spend $5 billion over the next five years to build a mixed-use property in India.

The company joins Dubai-based Emaar Properties PJSC, the Middle East’s biggest real-estate developer by market value, in investing in India, where the world's second-fastest pace of economic growth is lifting wages and spurring demand for commercial properties.“Our entry into the Indian real estate market couldn't be better timed,” said Prasad Koneru, Managing Director of Rakindo, a venture formed by Rakeen and Trimex to build the properties. “We are looking at developing several townships including a marina in south India.” Rakeen has already invested $100 million in India and will spend another $100 million to acquire land over the next few months, he said. The developer plans to raise funds in India later, Koneru said, without giving details. The company, which has more than 4,000 acre of land, plans to acquire an additional 5,000 acre, he said.

Emaar Properties chairman Mohamed A Alabbar on Monday said at the same conference the group’s Indian unit, Emaar MGF Land Ltd, aims to raise about $1.7 billion in an initial sale of shares.

Separately, the government of Ras-Al-Khaimah, the fourth- largest of the seven emirates, is setting up a $2 billion aluminum project in the southern state of Andhra Pradesh.

The company is building a 1.5 million metric tonne alumina plant and a 3,50,000 aluminum smelter and developing a 350 million tonne bauxite mine in the state, Massad said.

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