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UAE's Emaar and Indian partner MGF likely to split

Emaar Properties could end up with "a bigger share in the pie" after the joint venture splits, a source has claimed

Mohamed Alabbar, chairman, Emaar Properties.
Mohamed Alabbar, chairman, Emaar Properties.

Dubai's Emaar Properties is likely to split with its Indian partner, MGF Development, after spending 10 years as a joint venture in the country. 

Both parties are reportedly working on a deal to separate assets, Indian publication Economic Times reported. 

The joint venture was set up in February 2005 with an investment of $1.5bn by Emaar.

"Both partners are in advanced discussions to finalise the contours of the separation exercise, which is likely to be complex as it involves many running projects and large land parcels of about 3,035ha (7,500 acres) spread over various cities in India," a source told the daily.

Another anonymous source added: "The Indian promoter, Shravan Gupta, head of MGF Developments, is planning to move out. Gupta is no longer keen to actively participate in the management of the joint venture."

"Emaar Properties, which owns a 48.86% stake  in the joint venture in addition to loans and guarantees of about $500m, is likely to have a bigger share in the pie," one of the two sources said.

"All those projects in which Emaar has given loan guarantees will go to Emaar."
 

 

 

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